King v. Commissioner
United States Board of Tax Appeals
During 1920, while married and a resident of Texas, petitioner entered into an oral contract to prosecute a lawsuit, and receive compensation therefor only in the event that the final outcome of the suit would be successful to his client. Early in 1923 petitioner obtained for his client a judgment of over $2,000,000 in the lower court. The defendant appealed, and on August 31, 1923, while the appeal was pending, petitioner's wife died.
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During 1920, while married and a resident of Texas, petitioner entered into an oral contract to prosecute a lawsuit, and receive compensation therefor only in the event that the final outcome of the suit would be successful to his client. Early in 1923 petitioner obtained for his client a judgment of over $2,000,000 in the lower court. The defendant appealed, and on August 31, 1923, while the appeal was pending, petitioner's wife died. On July 22, 1924, the lawsuit was settled out of court for about 75 per cent of the judgment rendered by the lower court, and on September 8, 1924, petitioner…
1Opinion of the Court
*1161OPINION.
Love :
We are asked to decide whether petitioner is taxable on the entire fee of $52,000, or on only one-half thereof. Petitioner contends that, under the community property laws of the State of Texas, the fee, when received, was community property belonging one-half to himself and one-half to the estate of his deceased wife, and that he was taxable only on his one-half. The respondent, however, argues that since the fee was conditioned upon the successful outcome of the lawsuit in question, and petitioner’s wife having died before that condition was fulfilled, the fee can not be said…
2Cases cited7 opinions
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- Tourette v. TouretteArizona Supreme Court · 1914
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- Creamer v. BriscoeTexas Supreme Court · 1908
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3Cited by7 opinions
- Sneed v. CommissionerUnited States Board of Tax Appeals · 1934
- Houston v. CommissionerUnited States Board of Tax Appeals · 1934
- King v. CommissionerUnited States Board of Tax Appeals · 1932
- Sneed v. CommissionerUnited States Board of Tax Appeals · 1934
- Thorpe v. CommissionerUnited States Board of Tax Appeals · 1940
2 more not listed; retrieve them via the Exa API.