Fry v. Commissioner
United States Tax Court
Petitioner, engaged in the operation and management of two farm properties, executed two documents assigning his interest therein to his 18-year old daughter and 15-year old son. Thereafter he continued to exercise the same command over the properties and income therefrom as before. No disbursements of cash were made to the children except small amounts for their own personal use.
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Petitioner, engaged in the operation and management of two farm properties, executed two documents assigning his interest therein to his 18-year old daughter and 15-year old son. Thereafter he continued to exercise the same command over the properties and income therefrom as before. No disbursements of cash were made to the children except small amounts for their own personal use. Held, the net income from the operation of the two farms was properly included in the gross income of petitioner.
1Opinion of the Court
OPINION.
Mellott, Judge'.
The basic facts, shown at length in our findings, are not seriously in dispute. The operation of the two farms resulted in net income of $21,342.68. It is includible in petitioner’s gross income unless the action taken by him “within the first 15 days” of 1941 relieves him from the tax. Nor do counsel for the parties disagree as to the fundamental legal principles. Both recognize that under Lucas v. Earl, 281 U. S. 111, “anticipatory arrangements and contracts, however skillfully devised,” can not relieve the earner or producer of the income from tax upon it by…
2Cases cited14 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- Corliss v. BowersSupreme Court of the United States · 1930
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3Cited by3 opinions
- Binford v. CommissionerUnited States Tax Court · 1945
- Fry v. CommissionerUnited States Tax Court · 1945
- Harroun v. CommissionerUnited States Tax Court · 1945