Bickford v. Commissioner
United States Board of Tax Appeals
Held that payments made by stockholders of a corporation to its former employees in "appreciation" of past services to the corporation, out of the proceeds of the sale by such stockholders of their stock, constituted taxable income to the employees and not gifts.
1Opinion of the Court
*464OPINION.
McMahon:
The sole question for determination is whether the amounts of $4,500 and $6,000 received respectively by Bickford and Christensen in 1928 constituted taxable income, or constituted gifts which are exempt from income taxation. There are set forth in the margin applicable provisions of the Revenue Act of 1928.1
In Thomas M. Schumacher, 27 B. T. A. 895, we declined to follow our holding in William C. Barnes, 17 B. T. A. 1002, but instead followed the decision of the Court of Claims in Schumacher v. United States, 55 Fed. (2d) 1007, and the decision of the United States Circuit…
2Cases cited2 opinions
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Lucas v. Ox Fibre Brush Co.Supreme Court of the United States · 1930
3Cited by4 opinions
- Flax v. Tesorero de Puerto RicoSupreme Court of Puerto Rico · 1954
- Hoeppel v. WestoverDistrict Court, S.D. California · 1948
- Bickford v. CommissionerUnited States Board of Tax Appeals · 1936
- Jacob Flax v. Treasurer of Puerto RicoSupreme Court of Puerto Rico · 1954