JONES v. COMMISSIONER

Docket No. 110984.

1 T.C. 1207 (1943)

HERBERT JONES, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

United States Tax Court.

Promulgated May 28, 1943.


Attorney(s) appearing for the Case

J. F. Dammann, Esq., for the petitioner.

Harold H. Hart, Esq., for the respondent.


OPINION.

LEECH, Judge:

Respondent determined a deficiency in gift tax of $39,329.30 for the calendar year 1938. The issue is whether a payment of $222,643, made in property and money by petitioner in that year to his former wife in performance of his obligation to her under a contract settling property rights, entered into as an incident of their divorce proceedings, constituted a taxable gift.

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