Schwab v. Commissioner
United States Tax Court
Petitioners, as husband and wife, entered into a settlement agreement, subsequently incorporated in a divorce decree, which provided that the husband would transfer to the wife real and personal property valued at $ 205,699.94 within the month after the decree and would also pay her $ 300,000 in equal annual installments over a period of 11 years, the first installment to commence 1 year after the decree.
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Petitioners, as husband and wife, entered into a settlement agreement, subsequently incorporated in a divorce decree, which provided that the husband would transfer to the wife real and personal property valued at $ 205,699.94 within the month after the decree and would also pay her $ 300,000 in equal annual installments over a period of 11 years, the first installment to commence 1 year after the decree. Held, the transfers of real and personal property represented a property settlement; they are not includable in the wife's income under sec. 71(c) or deductible by the husband under sec.…
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined deficiencies in the income taxes of the petitioners as follows:
Socket No. Petitioner Year Deficiency
1319-63_Mary Schwab_ 1959 $27,004 45
1550-63_Robert E. Houston_ 1959 43, 474 47
These cases, consolidated both for trial and opinion, involve the question of whether certain transfers of real and personal property from Robert E. Houston to Mary Schwab during the year 1959 constituted a portion of a “principal sum” payable over more than 10 years and hence taxable as periodic payments within the meaning of section 71(c)(2).1 Certain other issues with…
2Cases cited12 opinions
- Baer v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1952
- Kronforst v. KronforstWisconsin Supreme Court · 1963
- Norton v. CommissionerUnited States Tax Court · 1951
- Carmichael v. CommissionerUnited States Tax Court · 1950
- Norton v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1951
7 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Robert E. Houston v. Commissioner of Internal Revenue, Mary Schwab, Formerly Mary R. Houston v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1971
- Martin v. CommissionerUnited States Tax Court · 1979
- Tracy v. CommissionerUnited States Tax Court · 1978
- White v. CommissionerUnited States Tax Court · 1984
- Springer v. Comm'rUnited States Tax Court · 2003
14 more not listed; retrieve them via the Exa API.