Blease v. COMMISSIONER OF INTERNAL REVENUE, Docket No. 23765.
| Decision Date | 10 June 1929 |
| Docket Number | Docket No. 23765. |
| Citation | 16 BTA 972 |
| Parties | COLE L. BLEASE AND LILLIE S. BLEASE, PETITIONERS, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. |
| Court | U.S. Board of Tax Appeals |
Cole L. Blease pro se, and John D. Long, Esq., for the petitioners.
T. M. Mather, Esq., for the respondent.
This proceeding involves the redetermination of a deficiency in income tax for the calendar year 1923 in the amount of $1,614.23. It is alleged in the petition that respondent erred (1) in holding that the amount of a verdict obtained in an action to enforce a contract to devise property is taxable income in the year received; (2) in failing to hold that a verdict in an action to enforce a contract to bequeath property is not taxable but stands in lieu of a bequest or devise; (3) in holding that the verdict, if taxable, is taxable during the year 1923, error being that if taxable at all, it should be distributed over the period of 1911 to 1921; (4) in failing to hold that the value of the services rendered prior to February 28, 1913, which was included in the verdict, was nontaxable, and (5) in holding that the total amount of the verdict, less attorney's fee, to wit, $19,937, constitutes taxable income for the year 1923.
This proceeding was submitted on the pleadings and an exhibit filed by petitioners, which consisted of copies of the complaint and summons in the case of Lillie S. Blease v. John R. Abney, Exr. of Benjamin L. Abney, of a copy of the answer in the same cause and of a copy of a judgment rendered therein, and an exhibit filed by respondent which consisted of the original income-tax return filed by petitioners for the calendar year 1923. From the pleadings and exhibits we make the following finding of fact.
FINDINGS OF FACT.
Petitioners are citizens and residents of Columbia, County of Richland, State of South Carolina.
The complaint and summons in the action Lillie S. Blease v. John R. Abney, Exr. of Benjamin L. Abney, read:
STATE OF SOUTH CAROLINA | > IN THE COURT OF COMMON PLEAS. COUNTY OF RICHLAND | Lillie S. Blease, Plaintiff, | vs. | John R. Abney, Exr. of Benjamin > COMPLAINT L. Abney, Defendant. |
Plaintiff above named, complaining of the above named defendant, alleges:
1. That Benjamin L. Abney died in the County of Richland, State of South Carolina, on or about the 11th day of November, A. D. 1921; and upon information and belief, that the defendant John R. Abney is the duly appointed and qualified executor of said Benjamin L. Abney, deceased, having been so appointed by the Probate Judge of Richland County, State aforesaid.
2. That on or about the ____ day of April, 1911, the said Benjamin L. Abney came to the home of plaintiff and resided at and made his home with said plaintiff from said time to the date of his death, in November, 1921.
3. That during the same time the plaintiff, at the request of said Benjamin L. Abney, deceased, rendered and furnished to him constant, arduous and exacting attention, care, labor and services.
4. That a considerable part of said time the said decedent was sick, nervous and irritable; demanded and required tactful, difficult and constant care, attention, service and nursing; and plaintiff rendered to said decedent (at much personal sacrifice to herself, use and expenditure of bodily health, strength and vigor) the attentions and care necessary to meet his needs and demands, and to make his home and life comfortable, to relieve as far as possible his nervous, irritable nature and condition.
5. That said decedent promised and agreed (constantly repeating and renewing said promises and agreement from time to time) to pay and compensate plaintiff for such services, and especially to make ample provision at his death by Will, to compensate her for such services, the legal and moral obligation of which he constantly recognized and highly valued and appreciated.
6. That said decedent failed and neglected to carry out his contract, and to compensate plaintiff for said services.
7. That said services, labors and attentions so furnished by plaintiff to the said Benjamin L. Abney were of the value of and reasonably worth the sum of One Hundred Thousand ($100,000.00) Dollars.
8. That a verified bill and account for said services has been duly presented to the defendant, John R. Abney, as Executor of Benjamin L. Abney, and payment of same has been refused before the commencement of this action.
WHEREFORE plaintiff prays judgment against defendant for said sum of One Hundred Thousand ($100,000.00) Dollars, for costs and other and further relief.
(Signed) D. W. ROBINSON Attorney for Plaintiff. STATE OF SOUTH CAROLINA, | > IN THE COURT OF COMMON PLEAS. COUNTY OF RICHLAND. | Lillie S. Blease, Plaintiff, | vs. > SUMMONS. John R. Abney, Exr. of Benjamin L. Abney, Defendant. |
To the defendant above named:
You are hereby summoned and required to answer the complaint herein, a copy of which is herewith served upon you, and to serve a copy of your answer to said complaint, upon the subscriber, D. W. Robinson, at his office, 908 Palmetto Building, Columbia, S. C., within twenty days after the service hereof, exclusive of the day of such service, and if you fail to answer the complaint within the time aforesaid plaintiff will apply to the Court for the relief demanded in the complaint.
D. W. ROBINSON Attorney for Plaintiff. November 18, 1922.
The said answer reads:
STATE OF SOUTH CAROLINA, | > IN THE COURT OF COMMON PLEAS. COUNTY OF RICHLAND. | Lillie S. Blease, Plaintiff, | vs. > ANSWER. John R. Abney, Exr. of Benjamin L. Abney, Defendant. |
The amended answer of the above named defendant to the complaint of the above named plaintiff respectfully shows to the Court, on information and belief:
1. That said defendant admits the allegations contained in the paragraph of the complaint numbered "1" and with reference thereto he avers that he was qualified as executor of the will of Benjamin L. Abney, deceased, by the Probate Judge of Richland County, on the 10th day of January, 1922;
2. That he denies each and every of the allegations contained in the paragraphs of the complaint numbered "2," "3," "4," "5," "6" and "7."
For a second and separate defense.
3. That defendant reiterates and repeats the denials contained in the above paragraph of the amended answer numbered "2."
4. That in 1910 the plaintiff and her husband, Cole L. Blease, were residents of Newberry County; and defendant's testator, Benjamin L. Abney, who was then an eminent lawyer in the State resident at Columbia, rendered said husband and the plaintiff valuable services in supporting said husband as a candidate for the position of Governor of the State of South Carolina and helping to elevate him to that position, which said husband attained in the general election of that year.
5. That on or about the ____ day of ______ 1911, the plaintiff came to Columbia with her said husband to reside in the mansion known as the Governor's Mansion, which was the property of the State of South Carolina and was used as the residence of its Governors during their respective terms of office.
6. That at said last named time, the defendant's said testator resided in a comfortable residence owned by him, about one mile from Columbia, called by him "Abney Park," with a supply of servants and vehicles adequate to the place; and he also had in the City, at Wright's Hotel, a bed room and a bath room for his occasional use when he wished to stop in town, and at the north-west corner of Washington and Bull Streets a residence which he was renting out.
7. That on or about the ____ day of ______ 1911, the said Cole L. Blease and the plaintiff were desirous of having the benefit of the knowledge, opinions and advice of defendant's testator during said Cole L. Blease's administration as Governor of the State, and to that end they induced said testator to become an occupant of said Governor's Mansion with said Cole L. Blease.
8. That during said administration of said Cole L. Blease, and during a succeeding administration of his, the defendant's testator rendered valuable services to and benefited said Cole L. Blease and plaintiff by way of counsel, advice and otherwise; and during the second administration of said Blease said testator rendered such services and benefits to said Blease and plaintiff, and in addition thereto said testator paid to the plaintiff sums of money for his board more than was usually charged for board in Columbia, and he paid other expenses; and he otherwise aided and benefited her and her family by lending money to her mother and deferring the payment of interest on a mortgage of $5,000.00 given therefor on the 3rd day of April, 1913, on a piece of land which has belonged to plaintiff and her two brothers since the death of the mother.
9. That during said two administrations, said testator had his own man servant to attend him; he had his own chauffeur to take him to his law office and to the trains, as he had need to travel in his large law practice, and to his said country place, which he continued to maintain and keep open for his use in entertaining his friends; and whenever he was sick and needed nursing he paid trained nurses for attending him.
10. That on the 22nd day of April, 1914, defendant's testator, out of his bounty, made a will which was his last will and testament and has been probated as such, wherein he devised to the plaintiff said house on the north-west corner of Washington and Bull Streets, in the City of Columbia, and the lot on which it stood being about 60 feet on Washington Street and about 146 feet on Bull Street.
11. That on the expiration of said administrations of said Cole L. Blease, said testator took said Blease and the plaintiff to live with him in said last named house and gave them shelter, and he paid plaintiff a higher rate for his board than was usual in the City; he paid at least a part of the expenses of the house, such as repairs,...
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