Mariani v. Commissioner
United States Tax Court
Petitioner's lawsuit against his father's estate, and the executor, devisees, and legatees of said estate, was settled for $ 70,000. The suit was based on his performance of services for his father as ranch superintendent, the claimed promise of his father to leave him one-third of his property when he died for his performance of said services, and the breach of said agreement by his father who specifically disinherited him by his will and codicil.
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Petitioner's lawsuit against his father's estate, and the executor, devisees, and legatees of said estate, was settled for $ 70,000. The suit was based on his performance of services for his father as ranch superintendent, the claimed promise of his father to leave him one-third of his property when he died for his performance of said services, and the breach of said agreement by his father who specifically disinherited him by his will and codicil. Held, the net amount petitioner received in the settlement, $ 39,666.66 (after paying attorney's fees and investigating fees), was not excludable…
1Opinion of the Court
OPINION
Respondent’s position is that the $39,666.66, the net amount petitioner received in settlement of his suit against his father’s estate, constitutes taxable “gross income” under section 63 (a).
Petitioner argues that the net sum he received in settlement of his suit was excludable from his gross income under section 102. In general, that section provides that gross income “does not include the value of property acquired by gift, bequest, devise, or inheritance.”
Petitioner’s suit was nothing more than a claim against the estate. It was based on an alleged agreement with decedent,…
2Cases cited3 opinions
- Ethel West Cotnam v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Cotnam v. CommissionerUnited States Tax Court · 1957
- Davies v. CommissionerUnited States Tax Court · 1954
3Cited by4 opinions
- Wolder v. CommissionerCourt of Appeals for the Second Circuit · 1974
- Victor R. Wolder and Marjorie Wolder, Appellants-Cross-Appellees v. Commissioner of Internal Revenue, Appellee-Cross-Appellant. Estate of Marguerite K. Boyce v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1974
- Miller v. CommissionerUnited States Tax Court · 1987
- Mariani v. CommissionerUnited States Tax Court · 1970