Case v. Commissioner
United States Tax Court
Petitioner was the beneficiary of a trust by the terms of which she was to be paid the "income profits and proceeds" thereof. In the taxable year the trust received short term capital gains. It also received and retained amounts paid pursuant to an option to purchase certain trust property, which option was not exercised by the holder of the option. It also received interest on bonds which it had acquired at a premium. All of these items were reported as income by the trust.
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Petitioner was the beneficiary of a trust by the terms of which she was to be paid the "income profits and proceeds" thereof. In the taxable year the trust received short term capital gains. It also received and retained amounts paid pursuant to an option to purchase certain trust property, which option was not exercised by the holder of the option. It also received interest on bonds which it had acquired at a premium. All of these items were reported as income by the trust. It did not distribute to petitioner the capital gains, the amounts received pursuant to the option, or that part of the…
1Opinion of the Court
OPINION.
Kern, Judge:
We stress at the beginning of this opinion that the questions before us here are not whether the several items constitute income properly taxable to the trust (or, in the case of the amortization of bond premiums, a deduction allowable to the trust as such), but whether the several items constitute “income which is to be distributed currently to the beneficiaries,” and thus taxable to the petitioner-beneficiary rather than to the trust.1 There is no question raised as to propriety of taxing the trust upon the short term capital gains other than whether the capital gains…
2Cases cited6 opinions
- Shield Co. v. CommissionerUnited States Tax Court · 1943
- Levy's EstateSupreme Court of Pennsylvania · 1939
- Eager's Guardian v. PollardCourt of Appeals of Kentucky · 1922
- McCoy v. McCloskeyNew Jersey Court of Chancery · 1922
- Harris v. CommissionerUnited States Tax Court · 1945
1 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Case v. CommissionerUnited States Tax Court · 1947
- Swingle v. CommissionerUnited States Tax Court · 1959