Swofford v. Commissioner
United States Tax Court
Held, the amount of $ 15,000 received by petitioner in 1964 upon his discharge as an officer from the U.S. Air Force based upon his length of service was severance pay taxable in full as ordinary income.
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Held, the amount of $ 15,000 received by petitioner in 1964 upon his discharge as an officer from the U.S. Air Force based upon his length of service was severance pay taxable in full as ordinary income. Such payment to petitioner did not qualify for capital gains treatment as a lump-sum distribution from an employees' trust or pension plan under the provisions of secs. 401 and 402, I.R.C. 1954; held, further, respondent's determination as to the allowable depreciation deduction on certain office equipment is sustained.
1Opinion of the Court
OPINION
There is nothing to distinguish this case on its facts from all of the other cases decided by this and other courts where it has been held severance pay such as petitioner received which results from length of service is not to be excluded from income tax.1 See Elmer D. Pangburn,, 13 T.C. 169 (1949); Marshall Sherman Scarce, 17 T.C. 830 (1951); Hoeppel v. Westover, 79 F. Supp. 794 (S.D. Calif. 1948). In the cited cases it was held such severance pay was ordinary income. Here the petitioner concedes that the severance payment in the amount of $15,000 was subject to income tax but the…
2Cases cited1 opinion
- Hoeppel v. WestoverDistrict Court, S.D. California · 1948
3Cited by3 opinions
- Hardin v. CommissionerUnited States Tax Court · 1973
- SteinUnited States Tax Court · 1992
- Swofford v. CommissionerUnited States Tax Court · 1967