De Brabant v. Commissioner
United States Board of Tax Appeals
TRUST INCOME - TO WHOM TAXABLE - REVENUE ACT OF 1928. - Where the person to whom income of a trust is distributable, is ascertained, but the distributability of that income, withheld during the tax year by the trustee on the ground that part or all of the amount withheld was corpus and not income, was contested, conclusively adjudicated in a later year as distributable income of the trust and then paid to the beneficiary, such income is not taxable to the trust under section…
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TRUST INCOME - TO WHOM TAXABLE - REVENUE ACT OF 1928. - Where the person to whom income of a trust is distributable, is ascertained, but the distributability of that income, withheld during the tax year by the trustee on the ground that part or all of the amount withheld was corpus and not income, was contested, conclusively adjudicated in a later year as distributable income of the trust and then paid to the beneficiary, such income is not taxable to the trust under section 161(a)(1), but is taxable to the beneficiary thereof for the year when distributable, whether or not it was then…
1Opinion of the Court
OPINION.
Leech:
The respondent determined a deficiency in income tax, in the sum of $38,739.83, against the petitioner for the year 1930. Petitioner attacks this determination on the ground that it was taxable income to a trust and not to the petitioner as beneficiary thereof.
The facts, which were stipulated, are substantially as follows:
During all of the year 1930, and for approximately 12 years prior thereto, the Commercial Trust Co. of New Jersey, a New Jersey banking corporation, as trustee under a trust agreement with William A. Clark, dated February 16, 1918, held title to 36,000 shares…
2Cases cited2 opinions
- Freuler v. HelveringSupreme Court of the United States · 1934
- Debrabant v. Commercial Trust Co.New Jersey Court of Chancery · 1933
3Cited by9 opinions
- Estate of Ernst N. Petschek, Deceased, Thomas H. Petschek and Asher Lans, Executors v. The Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1984
- Estate of Petschek v. CommissionerUnited States Tax Court · 1983
- Estate of Bruchmann, etc. v. CommissionerUnited States Tax Court · 1969
- Davis v. CommissionerUnited States Board of Tax Appeals · 1937
- De Brabant v. CommissionerUnited States Board of Tax Appeals · 1936
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