Davis v. Commissioner
United States Tax Court
In 1979, the ill-fated and tempestuous marriage of Priscilla and Cullen Davis was dissolved. The divorce decree specified the manner in which the community property was divided. Among other community assets, Priscilla was awarded a money judgment equal to one-half of the net value of the community estate. Held: The money judgment effectuated a distribution to Priscilla of a right of reimbursement.
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In 1979, the ill-fated and tempestuous marriage of Priscilla and Cullen Davis was dissolved. The divorce decree specified the manner in which the community property was divided. Among other community assets, Priscilla was awarded a money judgment equal to one-half of the net value of the community estate. Held: The money judgment effectuated a distribution to Priscilla of a right of reimbursement. Because the right of reimbursement was a community asset, its award to Priscilla is not a taxable event.
1Opinion of the Court
SWIFT, Judge:
In timely statutory notices of deficiency, respondent determined the following deficiencies in Federal income tax for 1979 in these consolidated cases:
Docket No. Petitioner(s) Deficiency
31386-84 Priscilla L. Davis $647,518
36032-85 Thomas C. Davis 662,262 and Karen J. Davis
After concessions and severance of an issue raised in docket No. 36032-85, the sole issue for decision is whether the manner in which the community property of petitioners Priscilla Davis and Thomas C. Davis was divided constitutes a nontaxable division of the community property or a taxable sale thereof.
FINDINGS…
2Cases cited27 opinions
- Dakan v. DakanTexas Supreme Court · 1935
- Cameron v. CameronTexas Supreme Court · 1982
- Colden v. AlexanderTexas Supreme Court · 1943
- Vallone v. ValloneTexas Supreme Court · 1982
- Belz v. Belz, Texas Court of Appeals, 5th District (Dallas)1984
22 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Davis v. CommissionerUnited States Tax Court · 1987
- Dispoto v. CommissionerUnited States Tax Court · 1990