Centre v. Commissioner
United States Tax Court
An employment agreement required the employer to maintain insurance policies on the employee as a means of funding the employer's obligation to make deferred compensation payments. The employer was the owner and beneficiary of the policies; the employee could obtain them only if the terminated his employment prior to his normal retirement age without any substantial willful breach of the employment agreement.
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An employment agreement required the employer to maintain insurance policies on the employee as a means of funding the employer's obligation to make deferred compensation payments. The employer was the owner and beneficiary of the policies; the employee could obtain them only if the terminated his employment prior to his normal retirement age without any substantial willful breach of the employment agreement. Held, the employee realized taxable income when the policies were transferred to him following termination of his employment rather than when the premiums thereon were paid.
1Opinion of the Court
Featherston, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax for 1964 in the amount of $6,317.90. The only issue is whether petitioner David Centre received taxable income in 1964, when, in settlement of a lawsuit against his former employer, he was assigned an insurance policy on his life and was paid $2,698.58 in cash.
FINDINGS OF FACT
David Centre (hereinafter referred to as petitioner) and his wife, Marian, were legal residents of White Plains, N.Y., at the time their petition was filed. Their joint Federal income tax return for 1964 was filed with the district…
2Cases cited10 opinions
- Commissioner v. LoBueSupreme Court of the United States · 1956
- Commissioner v. SmithSupreme Court of the United States · 1945
- Brodie v. CommissionerUnited States Tax Court · 1942
- Sproull v. CommissionerUnited States Tax Court · 1951
- Casale v. CommissionerUnited States Tax Court · 1956
5 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Goldsmith v. United StatesUnited States Court of Claims · 1978
- Childs v. CommissionerUnited States Tax Court · 1994
- Richardson v. CommissionerUnited States Tax Court · 1975
- Centre v. CommissionerUnited States Tax Court · 1970
- Childs v. CommissionerUnited States Tax Court · 1994
2 more not listed; retrieve them via the Exa API.