Kaiser v. Commissioner
United States Tax Court
Petitioner is the life beneficiary of a trust created under the will of her deceased husband, the corpus of which consists of one-fifth of the outstanding shares of stock of a family-owned corporation, the other stockholders being the children of the deceased husband by a former wife. The officers of the corporation were also of that group.
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Petitioner is the life beneficiary of a trust created under the will of her deceased husband, the corpus of which consists of one-fifth of the outstanding shares of stock of a family-owned corporation, the other stockholders being the children of the deceased husband by a former wife. The officers of the corporation were also of that group. They directed the affairs of the corporation, to the end that no dividends were distributed for a number of years, which caused petitioner to institute suit against the corporation and its officers for an accounting. An agreement of settlement was reached…
1Opinion of the Court
OPINION.
TurneR, Judge:
It is the contention of the petitioner that the above payments received by her during the taxable years were not income within the meaning of section 22 (a) of the Internal Revenue Code, “either because they are a return of capital or gift, or because they are exempt under Section 22 (b) (3) I. R. C.”1
As we read the petitioner’s brief, the argument as to exemption under section 22 (b) (3) is that the money payments received in the taxable years were “not the fruits of a legacy,” but “the legacy itself,” and were therefore property acquired by bequest and exempt under the…
2Cases cited6 opinions
- Lyeth v. HoeySupreme Court of the United States · 1938
- Irwin v. GavitSupreme Court of the United States · 1925
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Carlisle v. CommissionerCourt of Appeals for the Sixth Circuit · 1948
- Townsend v. CommissionerUnited States Tax Court · 1949
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Kaiser v. CommissionerUnited States Tax Court · 1952