Washington v. Commissioner
United States Board of Tax Appeals
1. Petitioner in writing conveyed to his wife and children a four-fifths interest in a royalty contract he had with a corporation, reserving to himself (1) the right to modify the contract and reduce the royalty, (2) to pay four fifths of his debts, in unascertained amount, and (3) to pay four fifths of the living expenses of his dependent family; and in the exercise of the reserved rights, petitioner, with the consent of his wife and children, received and disbursed the…
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1. Petitioner in writing conveyed to his wife and children a four-fifths interest in a royalty contract he had with a corporation, reserving to himself (1) the right to modify the contract and reduce the royalty, (2) to pay four fifths of his debts, in unascertained amount, and (3) to pay four fifths of the living expenses of his dependent family; and in the exercise of the reserved rights, petitioner, with the consent of his wife and children, received and disbursed the royalty funds. Held, the royalty fund so received is income taxable to petitioner. 2. Payments made by petitioner in…
1Opinion of the Court
*791OPINION.
Sea well:
1. With respect to the first issue, petitioner contends that by his letter of December 30, 1918, he gave to his wife and three children not only a four-fifths interest in the royalties to become due and payable to him, but a four-fifths interest in the contract with the G. Washington Coffee Refining Co., from which the income was to be derived. Respondent says and contends that the letter was a temporary expression of intention of petitioner expressly limited in duration until petitioner should “ in the near future, cause a formal document to be prepared and executed,” and…
2Cases cited3 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Kenniff v. CaulfieldCalifornia Supreme Court · 1903
- Schweitzer v. CommissionerUnited States Board of Tax Appeals · 1934
3Cited by1 opinion
- Washington v. CommissionerUnited States Board of Tax Appeals · 1934