Heyn v. Commissioner
United States Tax Court
In 1955 petitioner settled a claim against a former employer for a breach of an employment contract. The settlement agreement provided for payment of a total of $ 45,500 payable in five annual installments of $ 9,100 each, beginning in January 1956. The agreement also provided for immediate payment in 1955 to petitioner of $ 41,835 (discounted value of the five annual payments). The agreement labeled this commuted payment as a "loan," to be evidenced by petitioner's five…
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In 1955 petitioner settled a claim against a former employer for a breach of an employment contract. The settlement agreement provided for payment of a total of $ 45,500 payable in five annual installments of $ 9,100 each, beginning in January 1956. The agreement also provided for immediate payment in 1955 to petitioner of $ 41,835 (discounted value of the five annual payments). The agreement labeled this commuted payment as a "loan," to be evidenced by petitioner's five promissory notes to the former employer, each in the sum of $ 9,100 and becoming due in 1956 and succeeding years. Held:…
1Opinion of the Court
MulRoney, Judge:
Tbe respondent determined a deficiency in petitioners’ income tax for tbe taxable year 1955 in tbe amount of $17,533.25.
The only issue is whether the amount petitioner Victor H. Heyn received in 1955 from bis employer, Charles O. Gilfillan for tbe cancellation of bis employment contract is taxable income for that year.
FINDINGS OF FACT.
Some of tbe facts are stipulated and they are found accordingly.
On November 23, 1951, Victor H. Heyn entered into a 25-year employment contract with Charles O. Gilfillan to look after the latter’s farm property. On or about July 1, 1955, Heyn was…
2Cases cited2 opinions
- Gann v. CommissionerUnited States Board of Tax Appeals · 1940
- Jessop v. CommissionerUnited States Tax Court · 1951
3Cited by21 opinions
- Alexander v. Internal Revenue Service of the United StatesCourt of Appeals for the First Circuit · 1995
- Henry C. Beck Builders, Inc. v. CommissionerUnited States Tax Court · 1964
- Coupe v. Comm'rUnited States Tax Court · 1969
- Alexander v. CommissionerUnited States Tax Court · 1995
- Arlen v. Comm'rUnited States Tax Court · 1967
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