Helvering v. Horst
United States Supreme Court
311 U.S. 112 (1940)
Relevant factsFree
Horst (plaintiff) owned negotiable bonds entitling him to principal at maturity and periodic interest paid via detachable coupons. He gave the coupons to his son before they came due. The Commissioner (defendant) determined the interest payments were taxable income to Horst.
IssueFree
Whether a gift of interest coupons detached from bonds constitutes realized income to the donor.