Estate of Basch v. Commissioner
United States Tax Court
1. Decedent died January 2, 1943. During 1942 he was employed by X Co. on a salary plus a bonus consisting of a percentage of profits as ascertained by its certified public accountants. Decedent's percentage of 1942 profits was so ascertained in February 1943, a month or more after death.
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1. Decedent died January 2, 1943. During 1942 he was employed by X Co. on a salary plus a bonus consisting of a percentage of profits as ascertained by its certified public accountants. Decedent's percentage of 1942 profits was so ascertained in February 1943, a month or more after death. A credit was then entered on the company books in decedent's favor and interest was computed thereon as of January 1, 1943. The bonus was paid to petitioner, decedent's estate, during 1943. Held, bonus income is taxable to such petitioner in 1943 under section 126 of the Internal Revenue Code. 2. Decedent…
1Opinion of the Court
OPINION.
Hill, Judge:
Section 126, Internal Revenue Code,2 provides in effect that items not properly includible in a decedent’s income under the accounting method used by such decedent shall be included in the income of the person who rightfully receives such items. Decedent here consistently reported his income on the cash basis. The question for our determination therefore is whether the items of income in controversy are properly includible in decedent’s income. If they are not so in-cludible, then they should be included in petitioner’s income, since petitioner rightfully received them.
Dece…
2Cases cited2 opinions
- Taft v. BowersSupreme Court of the United States · 1929
- Sanchez v. Comm'rUnited States Tax Court · 1946
3Cited by10 opinions
- Findlay v. CommissionerUnited States Tax Court · 1962
- O'Daniel v. CommissionerUnited States Tax Court · 1948
- Dixon v. United StatesDistrict Court, E.D. Kentucky · 1950
- Richardson v. United StatesDistrict Court, E.D. Michigan · 1959
- Richardson v. United StatesCourt of Appeals for the Sixth Circuit · 1961
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