Rathborne v. Commissioner
United States Board of Tax Appeals
1. Petitioner's grandfather in his will created a testamentary trust, of which petitioner was one of the beneficiaries. Held, the trust was not a mere agency to act for petitioner and one other beneficiary, the remaindermen under the will, but was a "trust", taxable as a separate entity under the provisions of sections 161-164, inclusive, Revenue Act of 1932, and losses incurred by the trust in the sale of assets are deductible by the trust in computing its own net income,…
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1. Petitioner's grandfather in his will created a testamentary trust, of which petitioner was one of the beneficiaries. Held, the trust was not a mere agency to act for petitioner and one other beneficiary, the remaindermen under the will, but was a "trust", taxable as a separate entity under the provisions of sections 161-164, inclusive, Revenue Act of 1932, and losses incurred by the trust in the sale of assets are deductible by the trust in computing its own net income, but are not deductible in part by petitioner, a beneficiary, in computing his net income. Anderson v. Wilson,289 U.S. 20.…
1Opinion of the Court
OPINION.
Black :
These proceedings involve deficiencies in income tax for the years 1932 and 1933 in the amounts of $401.55 and $544.65, respectively. The principal issue is whether, under the stipulated facts, petitioner is taxable on any part of the $21,905.20 and $18,886.02 paid to him during 1932 and 1933, respectively, by the trustee of the trust estate created under the will of Joseph Rathborne, deceased, petitioner’s grandfather, and, if so, the determination of the respective taxable portions for the taxable years in question. In his income tax returns filed for the years 1932 and 1933,…
2Cases cited12 opinions
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Anderson v. WilsonSupreme Court of the United States · 1933
- Burnet v. WhitehouseSupreme Court of the United States · 1931
- Helvering v. FalkSupreme Court of the United States · 1934
- Pires v. YoureeSupreme Court of Louisiana · 1930
7 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- County Nat. Bank & Trust Co. v. HelveringCourt of Appeals for the D.C. Circuit · 1941
- Muir v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1950
- Garland v. CommissionerUnited States Tax Court · 1943
- Letts v. CommissionerUnited States Board of Tax Appeals · 1940
- Letts v. CommissionerUnited States Tax Court · 1944
2 more not listed; retrieve them via the Exa API.