Royce v. Commissioner
United States Tax Court
Held: Income derived from the sale and rental of construction equipment is taxable as community income to husband and wife who purported to give the equipment to husband's parents under an implicit agreement that the parents would give the income and property back to the husband and his family.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The sole issue in these proceedings is whether the income produced through the rental and sale of the construction equipment which was the subject of the declaration of gift is to be taxed to Ken and Hilda Royce as community income or to petitioner’s parents. The determinative question is whether the petitioner and his wife made bona fide gifts of the property or whether the transaction was made under implied restrictions and was, therefore, ineffective for tax purposes.
Examination of the facts in the light of the criteria of a bona fide gift discloses that the…
2Cases cited12 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Corliss v. BowersSupreme Court of the United States · 1930
- Weil v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1936
7 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Finley v. CommissionerUnited States Tax Court · 1956
- Finley v. CommissionerUnited States Tax Court · 1956
- Finley v. CommissionerUnited States Tax Court · 1956
- George Fakiris v. CommissionerUnited States Tax Court · 2020
- Montgomery v. CommissionerUnited States Tax Court · 1954
4 more not listed; retrieve them via the Exa API.