Pierpont v. Commissioner
United States Tax Court
Held, "continuation of salary" payments made to widow by corporation in recognition of services of deceased corporate officer were not intended as "gifts," excludible from gross income under section 102, I.R.C. 1954; such payments, to the extent that they exceeded $ 5,000 ( sec. 101(b), I.R.C. 1954), constituted taxable income.
1Opinion of the Court
OPINION.
Raum, Judge:
The Commissioner determined a $1,376.22 deficiency in petitioners’ 1956 income tax, resulting from his addition to their taxable income of “salary continuation payments” in the amount of $4,910.05, explained by him as follows:(a) It is held that salary continuation payments of $9,910.05 paid to Mrs. Pierpont in 1956 by the Loewy Drug Co. in consideration of her deceased husband’s services to that corporation constitutes taxable income to the extent of $4,910.05, computed as follows:
Salary continuation payments_$9,910. 05
Less amount excludible under Section 101(b) of the…
2Cases cited10 opinions
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Commissioner v. DubersteinSupreme Court of the United States · 1960
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Bogardus v. CommissionerSupreme Court of the United States · 1937
5 more not listed; retrieve them via the Exa API.
3Cited by31 opinions
- Heyward v. CommissionerUnited States Tax Court · 1961
- Poyner v. CommissionerCourt of Appeals for the Fourth Circuit · 1962
- Martin v. CommissionerUnited States Tax Court · 1961
- Poyner v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1962
- Evans v. CommissionerUnited States Tax Court · 1962
26 more not listed; retrieve them via the Exa API.