Taurog v. Commissioner
United States Tax Court
A husband and wife contemplating divorce and desirous of settling their property rights without resort to a court for that purpose, divided California community property by an instrument conveying to each his interest therein. The instrument was to be delivered upon divorce and was delivered immediately after divorce. It separately provided for the maintenance and support of the wife.
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A husband and wife contemplating divorce and desirous of settling their property rights without resort to a court for that purpose, divided California community property by an instrument conveying to each his interest therein. The instrument was to be delivered upon divorce and was delivered immediately after divorce. It separately provided for the maintenance and support of the wife. The divorce decree specifically adopted and made a part thereof the agreed provisions dividing the community property and directed that "The plaintiff and defendant are hereby ordered and required to perform all…
1Dissent
Disney, /.,
dissenting: The question here is whether the division of community property between husband and wife, agreed upon and made in writing by them and adopted by a divorce decree, constituted a gift from the husband to wife.
Section 1002 of the Internal Kevenue Code, a part of the law of gift tax, provides that there is gift to the extent that property is transferred for less than adequate and full consideration in money or money’s worth. Thus, it is seen that the criterion is not mere consideration, the common law test of gift, but that, as stated by the Supreme Court in Commissioner v.…
2Cases cited11 opinions
- Estate of Sanford v. CommissionerSupreme Court of the United States · 1939
- Freuler v. HelveringSupreme Court of the United States · 1934
- Commissioner v. WemyssSupreme Court of the United States · 1945
- Merrill v. FahsSupreme Court of the United States · 1945
- Jones v. CommissionerUnited States Tax Court · 1943
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