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CITE AS: Gould v. Gould, KTC 1917-1

SUPREME COURT OF THE UNITED STATES

KATHERINE C. GOULD v. HOWARD GOULD.

Docket: No. 41 Filed November 19, 1917

OPINION

Mr. Justice McREYNOLDS delivered the opinion of the Court.

A decree of the Supreme Court for New York county entered in 1909
forever separated the parties to this proceeding, then and now citizens of
the United States, from bed and board; and further ordered that plaintiff
in error pay to Katherine C. Gould during her life the sum of $3,000 every
month for her support and maintenance. The question presented is whether
such monthly payments during the years 1913 and 1914 constituted parts of
Mrs. Gould's income within the intendment of the act of Congress approved
October 3, 1913 (38 Stat. 114, 166, c. 16), and were subject as such to
the tax prescribed therein. The court below answered in the negative; and
we think it reached the proper conclusion.

Pertinent portions of the act follow:

"Section II, A. Subdivision 1. That there shall be levied, assessed,
collected and paid annually upon the entire net income arising or accruing
from all sources in the preceding calendar year to every citizen of the
United States, whether residing at home or abroad, and to every person
residing in the United States, though not a citizen thereof, a tax of 1
per centum per annum upon such income, except as hereinafter provided. * *
*

"B. That, subject only to such exemptions and deductions as are
hereinafter allowed, the net income of a taxable person shall include
gains, profits, and income derived from salaries, wages, or compensation
for personal service of whatever kind and in whatever form paid, or from
professions, vocations, business, trade, commerce, or sales, or dealings
in property, whether real or personal, growing out of the ownership or use
of or interest in real or personal property, also from interest, rent,
dividends, securities, or the transaction of any lawful business carried
on for gain or profit, or gains or profits and income derived from any
source whatever, including the income from but not the value of property
acquired by gift, bequest, devise, or descent. * * *"