McDonald v. Commissioner
United States Board of Tax Appeals
An agreement by the petitioner to pay his wife a sum of money in full settlement of property rights arising out of the marriage relation, providing for payment in part out of the petitioner's share, as beneficiary, of future income of an estate, held not to constitute an assignment of part of the petitioner's right to the income, but a mere agreement to pay out of income which first became income of the petitioner; and amounts paid by the trustees to his wife, pursuant to…
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An agreement by the petitioner to pay his wife a sum of money in full settlement of property rights arising out of the marriage relation, providing for payment in part out of the petitioner's share, as beneficiary, of future income of an estate, held not to constitute an assignment of part of the petitioner's right to the income, but a mere agreement to pay out of income which first became income of the petitioner; and amounts paid by the trustees to his wife, pursuant to the agreement, were properly included in the income of the petitioner.
1Opinion of the Court
*1240OPINION.
Sternhagen :
The sole issue presented for decision is whether the amount of $25,000 paid to the petitioner’s wife in 1927 by the trustees of his father’s estate, pursuant to the agreements set forth in the findings of fact, was income of the petitioner. The petitioner says it was not, contending that under the will he was the owner of alienable property in the nature of an equitable estate for years, that the agreements with his wife constituted an irrevocable assignment of an undivided interest in that estate, and that amounts paid to her under such an assignment are not income to him.
2Cases cited8 opinions
- Seatree v. CommissionerUnited States Board of Tax Appeals · 1932
- Mitchel v. CommissionerUnited States Board of Tax Appeals · 1924
- Lansill v. CommissionerUnited States Board of Tax Appeals · 1929
- Lisner v. HughesCourt of Appeals for the D.C. Circuit · 1919
- BLANEY v. COMMISSIONERUnited States Board of Tax Appeals · 1928
3 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Drake v. CommissionerUnited States Board of Tax Appeals · 1934
- McDonald v. CommissionerUnited States Board of Tax Appeals · 1933