MacFarlane v. Commissioner
United States Tax Court
Two months after death of petitioner's husband in 1944, the company he had long served in an executive capacity departed from its usual policy and paid to petitioner the approximate amount of bonus her husband would have received if he had survived. Held, on the facts, payment was not compensation for services but was a a gift to the widow, excludible from gross income under section 22 (b) (3) of the Code.
1Opinion of the Court
OPINION.
Harron, Judge:
The question in this proceeding is whether the sum of $51,580 paid to petitioner by Tribune in December 1944 was compensation earned by Macfarlane in his lifetime and hence taxable pursuant to section 126(a) of the Internal Revenue Code, as contended by respondent, or a gift, as contended by petitioner, excludible from gross income under section 22(b) (3).
The question is one of fact. We have found as fact, after considering all of the evidence, that the payment was a gift. In reaching this result we follow Louise K. Aprill, 13 T. C. 707. Respondent has argued that the…
2Cases cited6 opinions
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Bogardus v. CommissionerSupreme Court of the United States · 1937
- Bausch's Estate v. Commissioner of Internal Revenue (Two Cases)Court of Appeals for the Second Circuit · 1951
- Bausch v. CommissionerUnited States Tax Court · 1950
- Aprill v. CommissionerUnited States Tax Court · 1949
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3Cited by2 opinions
- Fisher v. United StatesDistrict Court, D. Massachusetts · 1955
- MacFarlane v. CommissionerUnited States Tax Court · 1952