Bennett v. Commissioner
United States Tax Court
Petitioner, under an exclusive contract to direct motion picture films for one producer, nevertheless contracted to produce a film for a second producer. About 5 months thereafter, petitioner and the first producer executed a contract whereby the first producer acquiesced in the arrangement with the second producer, and as consideration for such acquiescence, petitioner agreed to pay over a part of all sums received by him under his contract with the other producer.
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Petitioner, under an exclusive contract to direct motion picture films for one producer, nevertheless contracted to produce a film for a second producer. About 5 months thereafter, petitioner and the first producer executed a contract whereby the first producer acquiesced in the arrangement with the second producer, and as consideration for such acquiescence, petitioner agreed to pay over a part of all sums received by him under his contract with the other producer. Petitioner never paid over any amount in the tax year or thereafter. Petitioner was on the cash basis. Held, the entire sum…
1Opinion of the Court
OPINION.
Baum, Judge:
The question for decision is whether the full amount paid to petitioner as compensation for services rendered constituted gross income to him in the year of receipt, despite an obligation on his part to pay over to another a portion of such amount where he in fact did not pay over such portion.
Petitioner concedes that where a taxpayer has rendered services and receives money as compensation therefor under a claim of right and without restriction as to use or disposition, such amounts constitute gross income to him, notwithstanding that he may subsequently have to return…
2Cases cited14 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Helvering v. HorstSupreme Court of the United States · 1940
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Harrison v. SchaffnerSupreme Court of the United States · 1941
- Helvering v. EubankSupreme Court of the United States · 1941
9 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Benningfield v. CommissionerUnited States Tax Court · 1983
- Bennett v. CommissionerUnited States Tax Court · 1955
- Benningfield v. CommissionerUnited States Tax Court · 1983