United States Supreme Court Cases & Opinions

U.S. Supreme Court

Harris v. Commissioner, 340 U.S. 106 (1950)

Harris v. Commissioner of Internal Revenue

No. 14

Argued October 16, 1950

Decided November 27, 1950

340 U.S. 106

Syllabus

1. Petitioner and her husband entered into an agreement for settlement of their property rights, conditioned on the entry of a decree of divorce in a suit then pending in Nevada. The divorce court approved the agreement and entered a decree of divorce. Both the agreement and the decree provided that the agreement should survive the decree. A federal gift tax was assessed on the amount by which the value of the property transferred to the husband exceeded that received by petitioner.

Held: the federal gift tax (26 U.S.C. §§ 1000, 1002) was not applicable. Pp. 340 U. S. 108-113.

2. Petitioner having died since the submission of this case, and an administrator of her estate having not yet been appointed, the judgment of this Court is entered as of the date the case was submitted, in pursuance of the practice obtaining in those circumstances. Pp. 340 U. S. 112-113.

178 F.2d 861, reversed.

The Commissioner's determination of a gift tax deficiency for 1943 was expunged by the Tax Court. 10 T.C. 741. The Court of Appeals reversed. 178 F.2d 861. This Court granted certiorari, limited to questions 2 and 3 presented by the petition. 339 U.S. 917. Reversed, p. 340 U. S. 113.

Page 340 U. S. 107