Estate of Foote v. Commissioner
United States Tax Court
The corporation of which decedent was an officer paid after his death to his estate the approximate amount of the salary he would have earned from the time of his death to the end of the year. The payment was made to the estate rather than to the widow to ensure that the benefits would go to those who were the objects of deceased's bounty under his will.
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The corporation of which decedent was an officer paid after his death to his estate the approximate amount of the salary he would have earned from the time of his death to the end of the year. The payment was made to the estate rather than to the widow to ensure that the benefits would go to those who were the objects of deceased's bounty under his will. Held, the payment was not compensation for services, but was a gift excludible from gross income under section 22 (b) (3), I. R. C. 1939.
1Opinion of the Court
Tietjens, Judge:
The Commissioner determined a deficiency in income tax for the period August 9, 1951, to December 31, 1951, in the amount of $2,922.(36.
The question for decision is whether the sum of $9,968.83 paid by a corporation to the estate of its deceased president (the estate being the petitioner) is taxable income of the estate as additional compensation or is excludible from gross income as a gift.
FINDINGS OF FACT.
Some of the facts are stipulated, are so found, and the stipulation of facts, together with the pertinent exhibits, is included herein by reference.
Petitioner is the Estate…
2Cases cited4 opinions
- Fisher v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1932
- Bausch's Estate v. Commissioner of Internal Revenue (Two Cases)Court of Appeals for the Second Circuit · 1951
- Estate of Hellstrom v. CommissionerUnited States Tax Court · 1955
- Bausch v. CommissionerUnited States Tax Court · 1950
3Cited by4 opinions
- Estate of Sydney J. Carter, Deceased (A/k/a Sydney J. Canter) v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1971
- Estate of Foote v. CommissionerUnited States Tax Court · 1957
- Estate of Sydney J. Carter, Deceased (A/k/a Sydney J. Canter) v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1971
- Standard Asbestos Mfg. & Insulating Co. v. CommissionerUnited States Tax Court · 1958