McAdow v. Commissioner
United States Tax Court
In 1941 the son and daughter of William E. Benjamin, the former employer for many years of Richard C. McAdow, transferred to McAdow securities valued at $ 75,981.25, describing the transfer as a gift and filing gift tax returns. Under the evidence it is held that the transfer of the securities by these two individuals to McAdow constituted a gift and was not intended as compensation for services. Bogardus v. Commissioner, 302 U.S. 34.
1Opinion of the Court
OPINION.
Black, Judge-.
Amounts received as compensation for personal service are includible in gross income under section 22 (a) of the Internal Revenue Code. On the other hand, the value of property received by gift is specifically excluded from gross income by the provisions of section 22 (b) (3). There is thus squarely presented the question of whether the securities transferred to McAdow in 1941 by Henry R. Benjamin and Mrs. McEvoy were in payment for services rendered and, therefore, includible in income, or constituted gifts and, as such, were excludable from income.
It should be noted at…
2Cases cited2 opinions
- Bogardus v. CommissionerSupreme Court of the United States · 1937
- Schall v. CommissionerUnited States Tax Court · 1948
3Cited by1 opinion
- McAdow v. CommissionerUnited States Tax Court · 1949