Woodlawn Cemetery Asso. v. Commissioner
United States Board of Tax Appeals
1. Amounts transferred to an irrevocable trust by a cemetery association in 1928 and 1929 for perpetual care of the lots are not deductible from gross income. 2. The portion of the sales price on lots sold during the taxable years which the association was obligated to set aside for perpetual care was not income to the association.
1Opinion of the Court
*884OPINION.
Smith:
The petitioner’s principal contention is that it is entitled to deduct either as an ordinary and necessary business expense or as a loss in the years 1928 and 1929, the amounts paid over in those years to the Union Trust Co. as trustee for the perpetual care fund. The argument is made that the petitioner was under a bind*885ing obligation to the purchasers of lots already sold to provide an adequate fund for perpetual care and also that the establishment of the fund Avas necessary as a means of meeting competition in the sale of other lots.
Prior to 1928, the petitioner’s sale…
2Cases cited3 opinions
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Los Angeles Cemetery Asso. v. CommissionerUnited States Board of Tax Appeals · 1925
- New York & N. J. Mausoleum Co. v. CommissionerUnited States Board of Tax Appeals · 1932
3Cited by2 opinions
- Meadowlawn Memorial Gardens, Inc. v. United StatesUnited States Court of Claims · 1980
- Woodlawn Cemetery Asso. v. CommissionerUnited States Board of Tax Appeals · 1933