Paulson v. Commissioner
United States Board of Tax Appeals
The owner, now deceased, of the right to receive royalties of an oil and gas lease unconditionally assigned certain undivided interests therein to his children. The assignees received all production from the interests so assigned. Held, that the income resulting from such production is not taxable to the assignor.
1Opinion of the Court
*735OPINION.
Lansdon :
The pleadings and proof advanced at the hearing establish all the facts pertinent to this controversy. The only question for us to determine is whether the amounts received by the assignees were income directly to them or whether it was in the first instance income to Paulson and by him given to his children after the receipt thereof. Did the “Assignments of Royalty ” divest Paulson of all ownership in the conveyed property and the right to receive income therefrom or were they merely agreements providing for the passing on of certain parts of the assignor’s income to the…
2Cases cited3 opinions
- Wing v. MerchantSupreme Judicial Court of Maine · 1869
- Whitford v. HornSupreme Court of Kansas · 1877
- Jones v. KerrSupreme Court of Kansas · 1898
3Cited by1 opinion
- Paulson v. CommissionerUnited States Board of Tax Appeals · 1928