Morrow v. Commissioner
United States Tax Court
The purchase by petitioner of two annuity contracts providing for the payment of a total of $ 200 per month to an employee being retired after many years of valuable service, rendered with the understanding that retirement would be on a pension, held to be payment of additional compensation for such service and, accordingly, the cost of the annuity feature of each contract is not subject to gift tax.
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The purchase by petitioner of two annuity contracts providing for the payment of a total of $ 200 per month to an employee being retired after many years of valuable service, rendered with the understanding that retirement would be on a pension, held to be payment of additional compensation for such service and, accordingly, the cost of the annuity feature of each contract is not subject to gift tax. Further held that additional amounts paid by petitioner for the inclusion in each annuity contract of a refund provision obligating the insurer, in case of death of the annuitant before the total…
1Opinion of the Court
OPINION.
Leech, Judge:
Our finding that the intent of petitioner in procuring the two annuity contracts, as set out m our findings, was to provide additional compensation for services rendered by the annuitant under those contracts answers the first question involved in the issue of whether or not these annuities constituted gifts by petitioner. The payment as additional compensation for services can not be a gift, since it was intended to be and was additional consideration for those services. Poorman v. Commissioner, 131 Fed. (2d) 946; Willkie v. Commissioner, 127 Fed. (2d) 953; Fisher v.…
2Cases cited5 opinions
- Bogardus v. CommissionerSupreme Court of the United States · 1937
- United States v. PelzerSupreme Court of the United States · 1941
- Lucas v. Ox Fibre Brush Co.Supreme Court of the United States · 1930
- Fletcher Trust Co. v. CommissionerUnited States Tax Court · 1943
- Hutchings v. CommissionerUnited States Tax Court · 1943
3Cited by1 opinion
- Morrow v. CommissionerUnited States Tax Court · 1943