Rosenthal, James, et al., executors of estate of Ernestina Rosenthal. Smith, Karl B., Jr., administrator C.T.A. of estate of Ellie G. Canfield 2 6. 69588 Snider, Harry, estate of 3 Snider, Lena, executrix of estate of Harry Snider, and individually 3 Sproul Realty Company. The Commissioner does NOT ACQUIESCE in the following decisions: Smith, Karl B., Jr., administrator CTA of estate of Snider, Harry, estate of 25. 58199 Snider, Lena, executrix of estate of Harry Snider, and individually 25 58199 31 ོཚ ཚ 978 31 1064 1064 Acquiescence in result only. Acquiescence "in result only" means acceptance of the decision of the Court but disagreement with some or all of the reasons assigned for the decision. Acquiescence relates only to the issue whether rentals were required as a condition to petitioner's continued use and possession of a building. Nonacquiescence published in C.B. XI-2, 11 (1932), is withdrawn and acquiescence is substituted therefor. See Rev. Rul. 59-388, C.B. 1959-2, 76. 6 Acquiescence relates to the issue whether the release of a reserved testamentary general power of appointment constituted a taxable gift of the remainder value of the trust corpus. 7 Acquiescence relates to the issue whether the petitioners were entitled to deduct as medical expenses the cost of transportation to Florida in 1953, 1954, and 1955 and the amount paid for hotel accommodations in Florida in 1953. See Rev. Rul. 63-59, C.B. 1963-1, 144. Nonacquiescence published in C.B. 1960-2, 8, is withdrawn and acquiescence is substituted therefor. See Rev. Rul. 62-132, C.B. 1962-2, 73. 10 See Rev. Rul. 63-44, C.B. 1963-1, 11. 11 Nonacquiescence published in C.B. XV-2, 36 (1936) is withdrawn and acquiescence is substituted therefor. 12 Nonacquiescence published in C.B. 1938-2, 50, is withdrawn and acquiescence is substituted therefor. See Rev. Rul. 59-388, C.B. 1959-2, 76. 13 See Rev. Rul. 63-221, page 332. 14 Acquiescence is limited to cost-of-living allowances paid to employees whose basic compensation is fixed as under Public Law 9, 28 U.S.C. 508. Compare Rev. Rul. 57-592, C.B. 1957-2, 459. 15 Nonacquiescence published in C.B. 1956-2, 10, is withdrawn and acquiescence is substituted therefor. See Rev. Rul. 63-57, C.B. 1963-1, 103. Acquiescence relates to the issues of the valuation of gifts of the right to receive income from 34-percent interest in a partnership in trust for a specified period, and the sale of a 2-percent partnership for less than fair market value. 17 Acquiescence relates to the issue of the valuation of gifts of the right to receive income from a 34-percent interest in a partnership in trust for a specified period. The position of the Internal Revenue Service with respect to the tax treatment of carried interests of the type here involved is presently under study within the Service in connection with the preparation and development of regulations under section 612 of the Internal Revenue Code of 1954 and a study of the changes this will require to G.C.M. 22730, C.B. 1941-1, 214, primarily as the result of court decisions subsequent to the instant one. In the interim, the acquiescence published in Cumulative Bulletin 1949-1, 1, is withdrawn. This in effect reinstates the nonacquiescence published in Cumulative Bulletin 1946–2, 6. Nonacquiescence relates only to the issue whether petitioner was availed of during the year 1953 for the purpose of preventing the imposition of surtax on shareholders by permitting earnings or profits to accumulate beyond the reasonable needs of the business. Nonacquiescence relates to the issue whether the corpus of the trust is excludable from decedent's gross estate because the transfer in trust occurred when the trust was created rather than at the time the power of appointment was released. Nonacquiescence relates to the issue whether the petitioners were entitled to deduct as a medical expense in 1953 and 1954 the amount of an additional charge made by restaurants for preparing salt-free meals as well as the amount of taxi fares to such restaurants serving salt-free meals. Acquiescence published in C.B. 1959-2, 5, is withdrawn and nonacquiescence is substituted therefor. See Rev. Rul. 63-40, C.B. 1963-1, 46. Nonacquiescence relates only to the issue whether petitioner corporation, having requested and received permission to change from the accrual method to the cash receipts and disbursements method of reporting income, properly reported income on the cash method when it continued to employ the accrual method of accounting in keeping its books and records. Acquiescence, in the issue concerning the amount of accounts receivable as of December 31, 1952, which were properly excludable from the 1953 taxable income, published in C.B. 1961-2, 5, remains unchanged. Acquiescence published in C.B. 1959-2, 7, is withdrawn and nonacquiescence is substituted therefor. Nonacquiescence relates only to the issue whether a gift to a minor of the right to income is a gift of a present interest. PART I RULINGS AND DECISIONS UNDER THE INTERNAL REVENUE CODE OF 1954, EXCEPT THOSE PERTAINING TO ALCOHOL, TOBACCO, AND FIREARMS TAXES SUBTITLE A.-INCOME TAXES CHAPTER 1.-NORMAL TAXES AND SURTAXES SUBCHAPTER A.-DETERMINATION OF TAX LIABILITY PART II.-TAX ON CORPORATIONS SECTION 11.-TAX IMPOSED 26 CFR 1.11: Statutory provision; tax imposed. Extension of the 30 percent normal-tax rate to July 1, 1964. See T.D. 6681, page 233. PART IV.-CREDITS AGAINST TAX Subpart A.-Credits Allowable SECTION 37.-RETIREMENT INCOME 26 CFR 1.37-1: Allowance of credit for retirement income. Rev. Rul. 63–168 Section 37 of the Internal Revenue Code of 1954, relating to the allowance of credit for retirement income, is applicable to that portion of a civil service retirement annuity which is determined to be includible in the gross income of each spouse under section 72 of the Code and the community property laws of the applicable state. Under the community property laws of California, Washington, and Idaho, the community or separate character of such annuity paid under the compulsory program is determined by the marital status and domicile of the retired employee at the time when the services to which the annuity is attributable were performed. Revenue Ruling 57-446, C.B. 1957-2, 619, and Revenue Ruling 63-167, page 17 of this Bulletin, distinguished. Advice has been requested whether, in view of Revenue Ruling 57-446, C.B. 1957-2, 619, annuity payments received by a retired em |