Gordon v. Commissioner
United States Tax Court
Petitioner's father retired in 1949 under the New York State Employees' Retirement System, electing to take his retirement benefits under an option which provided that if he died before receiving annuity payments equal to the value of his annuity at the time of retirement, the balance was to be paid to petitioner as designated beneficiary. He died in 1950 and petitioner received as such beneficiary an amount in excess of his unrecovered cost.
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Petitioner's father retired in 1949 under the New York State Employees' Retirement System, electing to take his retirement benefits under an option which provided that if he died before receiving annuity payments equal to the value of his annuity at the time of retirement, the balance was to be paid to petitioner as designated beneficiary. He died in 1950 and petitioner received as such beneficiary an amount in excess of his unrecovered cost. Held, this amount was ordinary income to petitioner under section 165 (b), Internal Revenue Code of 1939, since the payment was not made as the result…
1Opinion of the Court
OPINION.
KeRN, Judge:
The Commissioner determined a deficiency in petitioner’s income tax for the calendar year 1950 in the amount of $8,468.34. The issue for decision is whether the amount of $27,638.42, received by the petitioner as the designated beneficiary of her deceased father under the rules and procedure of the New York State Employees’ Retirement System and representing the excess of the total amount received over the decedent’s unrecovered cost, is taxable as ordinary income rather than as long-term capital gains under the provisions of section 165 (b) of the Internal Revenue Code of…
2Cases cited3 opinions
- Glinske v. CommissionerUnited States Tax Court · 1951
- Fry v. CommissionerUnited States Tax Court · 1952
- Fry's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1953
3Cited by8 opinions
- United States v. Ophelia Johnson and Ophelia R. Johnson, as Under the Last Will and Testament of Clifford L. Johnson, DeceasedCourt of Appeals for the Fifth Circuit · 1964
- Richard N. Gunnison and Vivian E. Gunnison v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1972
- Gunnison v. CommissionerUnited States Tax Court · 1970
- Estate of Jack A. Benjamin, Deceased, John F. Benjamin, Co-Executor and Alice U. Benjamin v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1972
- Estate of Jack A. Benjamin, Deceased, John F. Benjamin, Co-Executor and Alice U. Benjamin v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1972
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