Schacht v. Commissioner
United States Tax Court
The petitioners, John and Elizabeth, entered into a community property settlement agreement in 1958 in anticipation of a divorce, whereby Elizabeth was assigned 36 1/2 percent of 266 1/4 shares of a stock. John was given an option to buy her shares or to sell them for her account, provided the price paid her was at least $ 90,000 after income taxes.
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The petitioners, John and Elizabeth, entered into a community property settlement agreement in 1958 in anticipation of a divorce, whereby Elizabeth was assigned 36 1/2 percent of 266 1/4 shares of a stock. John was given an option to buy her shares or to sell them for her account, provided the price paid her was at least $ 90,000 after income taxes. John agreed to pay Elizabeth for support until her death or remarriage or until she realized not less than $ 90,000 net from the sale of her stock interest. John sold all the stock in 1959 and paid her $ 100,000 plus $ 21,921.88 for taxes. John…
1Opinion of the Court
Bkitce, Judge:
Respondent determined a deficiency in income tax for the calendar year 1959 against each of the petitioners, who were formerly husband and wife, as follows:
Docket No. Petitioner Deficiency
2126-65_•_ John H. Schacht_ $27,989.00
2127-65_ Elizabeth Lyle Schacht_ 27,880.83
The cases were consolidated on motion of Elizabeth Lyle Schacht. The sole issue is whether an amount paid to Elizabeth with respect to a sale of shares of stock was taxable income to John H. Schacht or to Elizabeth Lyle Schacht.
FINDINGS OF FACT
The stipulation of facts and the exhibits attached thereto are…
2Cases cited4 opinions
- United States v. DavisSupreme Court of the United States · 1962
- Commissioner of Internal Revenue v. Mildred Irene SiegelCourt of Appeals for the Ninth Circuit · 1957
- Robert A. Riddell, District Director of Internal Revenue, Los Angeles District, California v. M. Robert Guggenheim, Jr.Court of Appeals for the Ninth Circuit · 1960
- Walz v. CommissionerUnited States Board of Tax Appeals · 1935
3Cited by9 opinions
- Weiner v. CommissionerUnited States Tax Court · 1973
- Shenker v. CommissionerUnited States Tax Court · 1984
- Condit v. CommissionerUnited States Tax Court · 1980
- Greaves v. CommissionerUnited States Tax Court · 1980
- Rainbow Inn, Inc. v. CommissionerUnited States Tax Court · 1969
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