Cecil R. Hundley 48 TC 339 (1967); Acq., 1967-2 C.B. 2
Tax Issues Involved
In 1960, the IRS found a deficiency in Cecil R. Hundley Jr.’s income tax. The case was heard in court to determine what amount of the cash bonus from Hundley Jr.’s baseball contract would be deductible for services performed by his father. Facts of the case are presented below.
Summary of the Relevant Facts of the Case
In 1958, Cecil R. Hundley Jr., a high school baseball player at the time, decided to begin training to achieve his goal of playing professional baseball. His father, who once played semi-professional baseball, agreed to help him achieve his goal. As a result, his father sacrificed his own business opportunities to train him. His father not only became
