Zaffaroni v. Commissioner
United States Tax Court
Petitioners are citizens of Uruguay, where they were married, and were domiciled in Mexico during the taxable years 1958 through 1961. The husband earned a salary in excess of $ 3,000 in each of the taxable years from United States sources. He also carried out numerous stock exchange transactions in New York in 1959, 1960, and 1961, from which substantial capital gains were realized.
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Petitioners are citizens of Uruguay, where they were married, and were domiciled in Mexico during the taxable years 1958 through 1961. The husband earned a salary in excess of $ 3,000 in each of the taxable years from United States sources. He also carried out numerous stock exchange transactions in New York in 1959, 1960, and 1961, from which substantial capital gains were realized. Held, both the salary and the capital gains were community income under the applicable laws of Mexico. Held, further, the wife's community share of both the salary and the capital gains is taxable to her under…
1Opinion of the Court
OPINION
Section 871 prescribes detailed rules on the taxation of nonresident aliens. During 1958 through 1961 (prior to the effective date of the Foreign Investors Tax Act of 1966, Pub. L. 89-809, 80 Stat. 1539), the section contained three provisions which are pertinent to this controversy. Section 871(a)(1)2 imposed a tax of 30 percent, in lieu of the section 1 tax, on the amount received as salaries from United States sources by every nonresident alien individual not engaged in trade or business in this country. Section 871(a)(2)(A)3 taxed the United States source net capital gains of…
2Cases cited30 opinions
- Poe v. SeabornSupreme Court of the United States · 1930
- United States v. MitchellSupreme Court of the United States · 1971
- United States v. MalcolmSupreme Court of the United States · 1931
- Bender v. PfaffSupreme Court of the United States · 1930
- In re the Estate of CrichtonNew York Court of Appeals · 1967
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3Cited by17 opinions
- Rosenkranz v. CommissionerUnited States Tax Court · 1976
- Westerdahl v. CommissionerUnited States Tax Court · 1984
- Angerhofer v. CommissionerUnited States Tax Court · 1986
- Estate of Charania v. Comm'rUnited States Tax Court · 2009
- Owens-Illinois, Inc. v. Comm'rUnited States Tax Court · 1981
12 more not listed; retrieve them via the Exa API.