Fairbanks v. Commissioner
United States Tax Court
Property settlement agreement, incorporated into the decree of divorce which petitioner obtained from her husband, provided that petitioner would receive monthly payments during her life. The agreement was binding on heirs, assigns, executors and administrators of the divorced husband.
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Property settlement agreement, incorporated into the decree of divorce which petitioner obtained from her husband, provided that petitioner would receive monthly payments during her life. The agreement was binding on heirs, assigns, executors and administrators of the divorced husband. Petitioner survived her husband, and trustees of an inter vivos trust created by the divorced husband made the monthly payments to petitioner in 1942 and 1943. Held, that the payments are includible in petitioner's income. Laughlin's Estate v. Commissioner, 167 Fed. (2d) 828, followed.
1Opinion of the Court
OPINION.
Harron, Judge:
The question in this proceeding is whether payments received by the petitioner in 1942 and 1943 from Indianapolis News Publishing Co. and from the trustees of the inter vivos trust established by petitioner’s former husband are taxable to her. The question involves the application of sections 22 (k), 171, and 162 (b) of the Internal Revenue Code.
The respondent’s contentions in this proceeding are in accord with G. C. M. 25999, 1949-1 C. B. 116, and with the conclusions of the United States Circuit Court of Appeals for the Ninth Circuit in Laughlin’s Estate v.…
2Cases cited2 opinions
- United States v. ButlerSupreme Court of the United States · 1936
- Heald v. District of ColumbiaSupreme Court of the United States · 1922
3Cited by16 opinions
- Shomaker v. CommissionerUnited States Tax Court · 1962
- Estate of Reid v. CommissionerUnited States Tax Court · 1950
- Twinam v. CommissionerUnited States Tax Court · 1954
- Dixon v. CommissionerUnited States Tax Court · 1965
- Riverfront Groves, Inc. v. CommissionerUnited States Tax Court · 1973
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