Legal Opinion

Rentschler v. Commissioner

United States Tax Court

Decided March 23, 1943No. Docket No. 108402PublishedCited by 37 opinions

The petitioner, as grantor, created a trust, the income of which is payable to his wife for life and then to the petitioner's children, with remainders over to the descendants of the said children per stirpes.

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The petitioner, as grantor, created a trust, the income of which is payable to his wife for life and then to the petitioner's children, with remainders over to the descendants of the said children per stirpes. There was no reverter or possibility of reverter, as such, but the petitioner reserved full and complete powers to direct and control the trustees in all their dealings with the trust properties and the power at any time to modify or alter all provisions of the trust instrument "relating to the Trustees or their power, authority and responsibility." Loans could be made to the petitioner…

1Opinion of the Court

OPINION.

Turner, Judge:

The petitioner questions the correctness of the respondent’s determination of an income tax deficiency of $84,548.75 for the year 1937. The case was submitted under Rule 30 (a) of the Court’s Rules of Practice, and the facts are found as stipulated by the parties.

Questions presented are (1) whether the income of a trust which the petitioner created, naming his wife and his descendants as beneficiaries, is taxable to him under section 22 (a) of the Revenue Act of 1936; (2) if the income is taxable to him, whether commissions paid to the corporate trustee are deductible in…

2Cases cited2 opinions

  1. Helvering v. CliffordSupreme Court of the United States · 1940
  2. Marshall v. CommissionerUnited States Tax Court · 1943

3Cited by37 opinions

  1. Stockstrom v. CommissionerUnited States Tax Court · 1944
  2. Morgan v. CommissionerUnited States Tax Court · 1945
  3. Hall v. CommissionerUnited States Tax Court · 1944
  4. Cherry v. CommissionerUnited States Tax Court · 1944
  5. Wheelock v. CommissionerUnited States Tax Court · 1946

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