Beatty v. Commissioner
United States Board of Tax Appeals
LOSSES - SALE OF CAPITAL ASSETS BY TRUST - WHETHER DEDUCTIBLE BY FIDUCIARY OR BENEFICLARY. - Petitioners were beneficiaries under a trust and also the remaindermen. During the taxable years the sole income of the trust was distributed to the beneficiaries. During the same years the trust sold certain capital assets at a loss. The trust is still in existence. Held, petitioners are not entitled to deduct such losses on their individual income tax returns.
1Opinion of the Court
*1289OPINION.
Black:
The question we have to decide in these proceedings is whether losses resulting from the sale of capital assets of a trust may be deducted from the income of the beneficiaries of the trust, who are also the remaindermen. The facts have already been fully stated and need not be repeated here.
There can be no question that the trust established by Boss J. Beatty held the legal title to the securities which were sold during each of the taxable years. In selling them, the trust did not have to consult the beneficiaries, who are the petitioners in this proceeding. It seems to us that…
2Cases cited3 opinions
- Anderson v. WilsonSupreme Court of the United States · 1933
- Arrott v. CommissionerUnited States Board of Tax Appeals · 1931
- Francis v. CommissionerUnited States Board of Tax Appeals · 1929
3Cited by5 opinions
- Beatty v. CommissionerUnited States Board of Tax Appeals · 1933
- Bisbee v. FahsDistrict Court, S.D. Florida · 1948
- County Nat'l Bank & Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1939
- Letts v. CommissionerUnited States Board of Tax Appeals · 1940
- Swingle v. CommissionerUnited States Tax Court · 1959