Harding v. Commissioner
United States Tax Court
Petitioner and wife agreed to separate, and that he pay her $ 350,000 cash, plus $ 5,000 per annum for approximately one year and thereafter one-fourth of his spendable income, as defined, until she should die or remarry, in consideration of her release of rights to support and maintenance of herself and children, dower, and all other marital rights in his property. The agreement specified that it was to be binding regardless of divorce.
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Petitioner and wife agreed to separate, and that he pay her $ 350,000 cash, plus $ 5,000 per annum for approximately one year and thereafter one-fourth of his spendable income, as defined, until she should die or remarry, in consideration of her release of rights to support and maintenance of herself and children, dower, and all other marital rights in his property. The agreement specified that it was to be binding regardless of divorce. There is no proof that divorce was then contemplated. The wife obtained a divorce more than one year and eight months later and the decree adopted and…
1Opinion of the Court
OPINION.
Black, Judge:
The question we have to decide is whether $350,000 paid by petitioner in 1941 to his wife Constance pursuant to a separation agreement signed on October 24,1941, which agreement was made a part of the decree of divorce June 28, 1943, was a taxable gift. Kespondent has determined that it was and has determined a deficiency of $47,879.94 in petitioner’s gift tax for the year 1941.
Pertinent provisions of the statutes and the regulations are printed in the margin.1
Petitioner contends that the $350,000 which he paid to his wife in 1941 under the circumstances narrated in our…
2Cases cited6 opinions
- 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
- Converse v. CommissionerUnited States Tax Court · 1945
- McLean v. CommissionerUnited States Tax Court · 1948
1 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Chase National Bank v. CommissionerCourt of Appeals for the Eighth Circuit · 1955
- Commissioner of Internal Revenue v. Barnard's EstateCourt of Appeals for the Second Circuit · 1949
- The Chase National Bank of the City of New York — Trust Division — and Eileen June McDonald Trustees of the Last Will and Testament of D. G. McDonald Deceased v. Commissioner of Internal Revenue, Eileen June McDonald of the Estate of D. G. McDonald Deceased v. Commissioner of Internal Revenue, Eileen June McDonald Thompson, of the Estate of D. G. McDonald Deceased v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1955
- Estate of Hundley v. CommissionerUnited States Tax Court · 1969
- Copley v. CommissionerUnited States Tax Court · 1950
3 more not listed; retrieve them via the Exa API.