Nicolai v. Commissioner
United States Board of Tax Appeals
1. In anticipation of a divorce, which was obtained in 1927, petitioner and his wife entered into an agreement settling their property rights, under which petitioner transferred in trust for the wife's benefit certain shares of stock of a corporation of which he was the sole owner, agreeing during the life of the wife to continue in ownership of a majority of the stock of the corporation and to cause it to declare and pay dividends annually, "out of available net earnings",…
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1. In anticipation of a divorce, which was obtained in 1927, petitioner and his wife entered into an agreement settling their property rights, under which petitioner transferred in trust for the wife's benefit certain shares of stock of a corporation of which he was the sole owner, agreeing during the life of the wife to continue in ownership of a majority of the stock of the corporation and to cause it to declare and pay dividends annually, "out of available net earnings", sufficient to enable the trustee to make stipulated monthly payments to the wife. Held, that under such agreement the…
1Opinion of the Court
*906OPINION.
Smith:
The first question for our consideration is whether the petitioner is liable for income tax for 1935 in respect of the $2,475 income for 1935 of the trust which he created with the "West Coast National Bank on or about January 31, 1927, under his agreement with Bessie Nicolai on December 31, 1926, and on $9,735.30 of the income of the trust for 1936, which is the amount paid over by the trustee in 1936 to the beneficiary of the fund, Bessie O’Gorman. The respondent contends that the petitioner is liable for income tax upon the income of the fund under the provisions of section…
2Cases cited7 opinions
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Lewellyn v. Electric Reduction Co.Supreme Court of the United States · 1927
- Helvering v. FitchSupreme Court of the United States · 1940
- Helvering v. LeonardSupreme Court of the United States · 1940
2 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Maloney v. SpencerCourt of Appeals for the Ninth Circuit · 1949
- Van Clief v. HelveringCourt of Appeals for the D.C. Circuit · 1943
- Portuguese-American Tin Co. v. CommissionerUnited States Tax Court · 1943
- Harry J. Stevens, Inc. v. CommissionerUnited States Tax Court · 1949
- Nicolai v. CommissionerUnited States Board of Tax Appeals · 1940
1 more not listed; retrieve them via the Exa API.