STONE v. LYNCH

No. 8310SC451.

315 S.E.2d 350 (1984)

Rudolph C. STONE and Audrey L. Stone v. Mark G. LYNCH, Secretary of the Department of Revenue.

Court of Appeals of North Carolina.

May 15, 1984.


Attorney(s) appearing for the Case

Smith, Patterson, Follin, Curtis, James & Harkavy by J. David James, Greensboro, for plaintiffs-appellants.

Atty. Gen. Rufus L. Edmisten by Sp. Deputy Atty. Gen. Myron C. Banks, Raleigh, for the State.


BECTON, Judge.

We must decide in this case whether union strike benefits are taxable as income to the recipient under North Carolina law, or whether they qualify as a gift, thereby allowing the taxpayer to exclude them from taxable income. We reverse the trial court, and we hold that the benefits constitute a gift and that plaintiff taxpayers are entitled to a refund on income tax paid on strike benefits.

I

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