Commissioner v. Duberstein case brief

Commissioner v. Duberstein

FACTS

1.  Duberstein received a Cadillac from a long-time business acquaintence. 
2.  Stanton received a large amount of money as a gratuity after he resigned his employment of ten years with a church.

ISSUE

1.  Was the Cadillac a gift of payment in exchange for business?
2.  Was Stanton's money received a gift?

HOLDING

1.  Cadillac was income, NOT a gift.  The motives were not disinterested.
2.  Facts were not sufficient.

RULES

-When determining whether something is a gift for taxation purposes, the critical consideration is the transferor's intention.
-Transferor's intention must be decided on a "case by case" basis.  (Question of fact).

ANALYSIS
-Gifts result from a "detached and disinterested generosity" and are often given out of "affection, respect, admiration, charity, etc."
-Contrasts gifts with payments given as an "involved and intensely interested" act.


Class: Federal Income Taxation
Subject: Gifts