Welles v. Sauber

SULLIVAN, District Judge.

This is an action by taxpayers to recover gift taxes paid by them for the years 1948, 1949, and 1950. Their claim is that the gifts, made under circumstances presently to be described, were of a present interest and so subject to the $3,000 exclusion granted gifts of such interests by Section 1003(b) (3) of the Internal Revenue Code of 1939. The government contends that the gifts were of a future interest, and the exclusion accordingly was not applicable.

Plaintiff has moved for a judgment on the pleadings, and it is therefore necessary to first decide whether the…