Brief Fact Summary. Petitioner was the grandson of Mary Longyear. Longyear had a sizable estate to which Petitioner claimed to be an heir. The will was contested during probate and Petitioner and the other heirs reached a compromise on the settlement of the estate.
Synopsis of Rule of Law. The value of property acquired by gift, bequest, devise, or inheritance is exempt from taxable income.
Issue. Whether property received by Petitioner from the estate is taxable as income?
Held. Chief Justice Hughes delivered the opinion for the Supreme Court of the United States in holding for Petitioner and finding that the value of the property should not count as taxable income.
It is not determined by local characterization.View Full Point of Law