Farr v. Commissioner
United States Tax Court
1. On October 14, 1938, beneficiaries of a liquidating trust of certain realty assigned to petitioner the right to receive all proceeds from the future sale of such realty in excess of $ 182,947.72, plus interest.
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1. On October 14, 1938, beneficiaries of a liquidating trust of certain realty assigned to petitioner the right to receive all proceeds from the future sale of such realty in excess of $ 182,947.72, plus interest. The realty was sold on June 21, 1941, and petitioner's share of the proceeds was $ 114,878.77. He received $ 84,878.77 of that sum in 1941, but $ 30,000 was placed in escrow and not released to petitioner until 1942. Upon the facts, held, that the $ 114,878.77 constitutes compensation to petitioner for services rendered in behalf of the beneficiaries of the trust and is taxable as…
1Opinion of the Court
OPINION.
Hill, Judge-.
There are three questions which we must decide concerning the excess proceeds of $114,878.77 received by petitioner from the sale of the Wyandotte property pursuant to the assignment dated October 14,1938: First, whether they constituted a capital gain under section 117, or ordinary income under section 22 (a); second, if they constituted ordinary income, whether they represented compensation for personal services under section 107; and, third, whether petitioner is entitled to deduct $93,070.95 from such amount of $114,878.77, regardless of the character of such income.
Fi…
2Cases cited2 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Dobson v. CommissionerSupreme Court of the United States · 1944
3Cited by54 opinions
- Pigman v. CommissionerUnited States Tax Court · 1958
- Johnston v. CommissionerUnited States Tax Court · 1950
- L. Heller & Son, Inc. v. CommissionerUnited States Tax Court · 1949
- Sloane v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1951
- Christine L. Pounds as Independent of the Estate of Horace E. Pounds and Christine L. Pounds v. United StatesCourt of Appeals for the Fifth Circuit · 1967
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