Tax Paper

ADAMS, JR. v. U.S., Cite as 40 AFTR 2d 77-5607, Code Sec(s) 119, (Ct Cl), 08/24/1977

Faneuil ADAMS, JR. and Joan P. Adams, PLAINTIFFS v. U.S., DEFENDANT.

Case Information:

[pg. 77-5607]

Code Sec(s): | 119 |

Court Name: | U.S. Court of Claims Trial Judge's Opinion, Trial Div., |

Docket No.: | No. 141-75, |

Date Decided: | 08/24/1977 |

Tax Year(s): | Years 1970, 1971. |

Disposition: | Decision for taxpayer. |

Cites: | 40 AFTR 2d 77-5607, 77-2 USTC P 9613. |

HEADNOTE

1. EXCLUSIONS FROM INCOME—Meals and lodging for employer convenience—convenience of employer rule. Fair rental value of residence furnished corporate officer in Japan by employer was excludable from income. His income did include "U.S. Housing Element", an amount designed to approximate average housing costs of similarly situated person in U.S. Taxpayer was required to accept the housing which was directly related to his work. Also, taxpayer performed many business duties at his residence thus making it "business premises".

Reference(s): 1977 P-H Fed. ¶8686(55). Code Sec. 119 .

OPINION

William P. McClure, John D. Heckert, Robert Feldgarden, McClure& Trotter, Attys. for Plaintiffs.

David C. Hickman, Theodore D. Peyser, Robert S. Watkins, Attys., Myron C. Baum, Act. Asst. Atty. Gen., for Defendant.

Judge: BERNHARDT, Trial Judge:

Opinion

*

[1] The plaintiffs are narrowly entitled to judgment in this close case, due in vital respects to business and social mores peculiar to Japan. The issue is whether the fair [pg. 77-5608] rental value of a Japanese residence furnished the plaintiffs by the employer of plaintiff Faneuil Adams, Jr., is excludable from their gross income under Section 119 of the Internal Revenue Code of 1954. It is, but just.

Plaintiffs Faneuil Adams, Jr. and Joan P. Adams are husband and wife who filed joint federal income tax returns for 1970 and 1971 with the Office of the Director of the Office of International Operations, Internal Revenue...