Spears v. Commissioner
United States Tax Court
Petitioner was employed from 1924 to 1929 as a superintendent of construction, receiving a fixed salary, and, on each project he bid and supervised, 10 per cent of the net profits thereof. One such project was started in 1925 and completed in 1927. Due to litigation, collection of the proceeds was not effected until 1941. Petitioner assisted in the litigation and in 1941 received $ 30,000 as his 10 per cent of the net profits on this project.
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Petitioner was employed from 1924 to 1929 as a superintendent of construction, receiving a fixed salary, and, on each project he bid and supervised, 10 per cent of the net profits thereof. One such project was started in 1925 and completed in 1927. Due to litigation, collection of the proceeds was not effected until 1941. Petitioner assisted in the litigation and in 1941 received $ 30,000 as his 10 per cent of the net profits on this project. This amount is more than 75 per cent of his total compensation allocated to the project, but less than 75 per cent of his total compensation under his…
1Opinion of the Court
OPINION.
Aknold, Judge:
The issue is whether section 107 of the Internal Kevenue Code, as amended by section 139 of the Revenue Act of 1942,1 is applicable to the payment of $30,000 received by petitioner in 1941 for services as superintendent of construction on a paving project at Temple Terrace, Florida, undertaken by Highway Engineering & Construction Co. in 1925. The section affords relief to taxpayers who receive in one year a large amount as compensation for personal services over a period of years and would otherwise have to pay higher surtaxes than if the amount had been received…
2Cases cited2 opinions
- Civiletti v. CommissionerUnited States Tax Court · 1944
- Nast v. CommissionerUnited States Tax Court · 1946
3Cited by20 opinions
- Warren v. CommissionerUnited States Tax Court · 1953
- Englar's Estate v. CommissionerCourt of Appeals for the Second Circuit · 1948
- Reynolds v. CommissionerUnited States Tax Court · 1956
- Ralph B. Wattley and Josephine R. Wattley v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1960
- Shaffer v. CommissionerUnited States Tax Court · 1957
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