United States v. William H. Folckemer and Capitola B. Folckemer

RIVES, Circuit Judge.

The primary question presented is whether the amount of $13,666.67, which the taxpayer 1 received during 1954 from the estate of William L. Honnold was part of a bequest or was interest includible in the taxpayer’s gross income. If held to be interest, then another question arises as to whether the amount is taxable in 1954, the year of its receipt by the taxpayer, or in 1955 under the conduit theory of taxation.

The testator, Honnold, died in 1950. His will duly probated in Los Angeles, California, bequeathed to Folckemer, “in the event he survives me by six months, the…