Anthony v. Commissioner
United States Tax Court
The decedent and X each owned an undivided interest in an oil lease. The purchaser of the oil impounded decedent's share of the proceeds after a lien was placed thereon by X because of a dispute with decedent resulting in litigation as to decedent's share of development and operating costs. In 1937 decedent gave his interest in the lease and in the impounded income to his brother.
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The decedent and X each owned an undivided interest in an oil lease. The purchaser of the oil impounded decedent's share of the proceeds after a lien was placed thereon by X because of a dispute with decedent resulting in litigation as to decedent's share of development and operating costs. In 1937 decedent gave his interest in the lease and in the impounded income to his brother. Held, the executors of decedent-donor, who was on the cash basis, received taxable income in 1940 when the litigation was terminated and the income released.
1Opinion of the Court
OPINION.
Hill, Judge:
The petitioners ably epitomized the case as follows:
A and K each owned an undivided interest in an oil lease. During 1936 and 1937 all proceeds from the sale of A’s oil were impounded by The Texas Company because of a dispute between A and K which resulted in litigation. On April 20, 1937, A irrevocably assigned his interest in the lease and in all impounded income to F. The impounded net income up to April 20,1937, amounted to $8,822.81. In 1940 the $8,822.81 was released by The Texas Company and paid to F.
Question: Is the $8,822.81 taxable in 1940 to A, who is on the…
2Cases cited3 opinions
- Helvering v. HorstSupreme Court of the United States · 1940
- Holmes v. CommissionerUnited States Tax Court · 1943
- McGuire v. WrightWest Virginia Supreme Court · 1881
3Cited by9 opinions
- Affelder v. CommissionerUnited States Tax Court · 1946
- Anthony's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1946
- McRitchie v. CommissionerUnited States Tax Court · 1956
- Cold Metal Process Co. v. CommissionerUnited States Tax Court · 1956
- Affelder v. CommissionerUnited States Tax Court · 1946
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