Ansorge v. Commissioner
United States Tax Court
An attorney received a power of attorney providing for a fee for his services of 40 percent of any recovery made upon his client's claim for compensation because of expropriation of certain ships and ship contracts by the United States Shipping Board Emergency Fleet Corporation. The power of attorney assigned such 40 percent interest, in any recovery, as fee, to the petitioner. Recovery was made in the Court of Claims, and paid by the United States.
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An attorney received a power of attorney providing for a fee for his services of 40 percent of any recovery made upon his client's claim for compensation because of expropriation of certain ships and ship contracts by the United States Shipping Board Emergency Fleet Corporation. The power of attorney assigned such 40 percent interest, in any recovery, as fee, to the petitioner. Recovery was made in the Court of Claims, and paid by the United States. Held, that the attorney's fee is taxable as ordinary income, and not as capital gain upon a capital asset assigned.
1Opinion of the Court
OPINION.
Disney, Judge:
In this proceeding the petitioner prays for rede-termination of a deficiency in income tax, determined in the amount of $44,082.14 for the calendar year 1937. The issue presented is whether the petitioner is taxable upon the entire amount of an attorney’s fee received by him, or whether he may report only a percentage thereof as capital gain under section 117 of the Revenue Act of 1936. Other issues set forth in the petition have been agreed upon by the parties and will be reflected by decision under Rule 50. All facts were stipulated, except that the petitioner’s income…
2Cases cited3 opinions
- United States v. GillisSupreme Court of the United States · 1877
- Smith v. WeeksMassachusetts Supreme Judicial Court · 1925
- Lopez v. United StatesUnited States Court of Claims · 1889
3Cited by5 opinions
- Hodous v. CommissionerUnited States Tax Court · 1950
- Ansorge v. CommissionerUnited States Tax Court · 1943
- Burns v. CommissionerUnited States Tax Court · 1965
- Hodous v. CommissionerUnited States Tax Court · 1950
- Hodous v. CommissionerUnited States Tax Court · 1950