Dravo v. Commissioner
United States Board of Tax Appeals
1. REVENUE ACT OF 1928, SECTION 167. - Where, under the terms of a trust, its income could be accumulated, added to corpus and the income, only, on that aggregate corpus was distributable to the grantor of the trust, upon his wife's death, held, that original accumulated trust income, added to and becoming part of the corpus, is not taxable to the grantor of the trust under the above statutory provision.
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1. REVENUE ACT OF 1928, SECTION 167. - Where, under the terms of a trust, its income could be accumulated, added to corpus and the income, only, on that aggregate corpus was distributable to the grantor of the trust, upon his wife's death, held, that original accumulated trust income, added to and becoming part of the corpus, is not taxable to the grantor of the trust under the above statutory provision. Preston R. Bassett,33 B.T.A. 182; Arthur J. Morris,33 B.T.A. 241. 2. Id. - Where, under such express trust or a resulting trust arising upon a grantor-controlled failure of the express trust,…
1Opinion of the Court
OPINION.
Leech:
The respondent determined a deficiency of $4,694.16 in income tax of Francis R. Dravo, for the calendar year 1931. The taxpayer died February 26, 1934. The petitioners are the executors of his estate. The only issue is the propriety of the action of respondent in including in the income of petitioners’ decedent the sum of $23,007.66. This amount was income received in 1931 by a trust, created by. the decedent, which was not distributed to the primary beneficiary but was retained by the trustees as an addition to corpus under the provisions of the trust.
We find the facts as…
2Cases cited8 opinions
- Helvering v. City Bank Farmers Trust Co.Supreme Court of the United States · 1935
- Lilley's EstateSupreme Court of Pennsylvania · 1922
- Wittfield v. ForsterCalifornia Supreme Court · 1899
- Clark v. CampbellSupreme Court of New Hampshire · 1926
- Sanford v. Van PeltSupreme Court of Missouri · 1926
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3Cited by5 opinions
- Corning v. CommissionerUnited States Board of Tax Appeals · 1937
- Corning v. CommissionerUnited States Board of Tax Appeals · 1937
- Dravo v. CommissionerUnited States Board of Tax Appeals · 1936
- Mills v. CommissionerUnited States Board of Tax Appeals · 1939
- Willson v. CommissionerUnited States Board of Tax Appeals · 1941