Samuel J. Chase and Jeannette S. Chase v. Commissioner of Internal Revenue

This case involves a single issue of law. The facts are all established by stipulation of the parties.

The question is whether the taxpayers are entitled to have the sum of $22,-500, allotted to Samuel J. Chase by the California Probate Court for extraordinary services rendered to the estate of George L. Leiter, deceased, and received during that year, taxed under Section 107 (a) of the Internal Revenue Code of 1939.

Chase was one of the executors of the Leiter estate. He was a lawyer. He rendered extraordinary services in connection with the case of Chase v. Leiter, 96 Cal.App.2d 439 , 215 P.2d 756 , a case filed in the state court of California, which involved the construction of the will and the right to possession of certain assets. On August 29,1951, an amended petition for compensation for extraordinary services rendered by Chase and Irving, his attorney, in connection with this case was filed. The matter came on for trial on December 7, 18, 19, 20, 1951, and January 31, 1952. Evidence, oral and documentary, was submitted. On February 14, 1952, the Superior Court of California determined the reasonable value of his extraordinary services in this case was $22,500, and he…