Estate of Putnam v. Commissioner, 324 U.S. 393 (1945)

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Estate of Putnam v. Commissioner of Internal Revenue

No. 534

Argued February 2, 1945
Decided March 26, 1945
324 U.S. 393

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE SECOND CIRCUIT

Syllabus

1. Whether at the date of the death of a taxpayer a dividend has "accrued," within the meaning of § 42 of the Revenue Act of 1938, so as to be includible in computing income of the taxpayer, is a question of federal law. P. 395.

2. A dividend which was declared prior to the date of the death of a taxpayer (assumed to be on the cash receipts basis), but which, by the terms of the declaration, was payable to stockholders of record on a date subsequent to his death, was not at the date of the death of the taxpayer "accrued," within the meaning of § 42 of the Revenue Act of 1938, and was not includible in computing net income of the taxpayer. P. 398. 144 F.2d 756, reversed.

Certiorari, 323 U.S. 702, to review the reversal of two orders of the Board of Tax Appeals (45 B.T.A. 517) involving the income tax liability of a taxpayer and of his estate.