Hemphill v. Commissioner
United States Tax Court
In 1938 petitioner and his wife created irrevocable trusts, of which he was trustee and of which each corpus consisted of 5,000 shares of stock of Aero Industries Technical Institute, Inc. (later merged into Aero-Crafts Corporation). The two minor children of petitioner were beneficiaries, one of each trust. Thereupon, petitioner held a minority of the stock of Industries.
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In 1938 petitioner and his wife created irrevocable trusts, of which he was trustee and of which each corpus consisted of 5,000 shares of stock of Aero Industries Technical Institute, Inc. (later merged into Aero-Crafts Corporation). The two minor children of petitioner were beneficiaries, one of each trust. Thereupon, petitioner held a minority of the stock of Industries. Petitioner became president and a director of Aero-Crafts on December 9, 1940. Under an agreement dated November 14, 1941, petitioner was required to resign as such president and director. Later, with the support of…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
With respect to the issue under section 167, Internal Revenue Code, the basic facts here presented are quite similar to those found in Arthur L. Blakeslee, 7 T. C. 1171. In that case we first discussed the applicability of section 167 and cited David Small, 3 T. C. 1142, reaffirmed in Estate of O. M. Banfield, 4 T. C. 29, as authority for holding that income not actually used for the support of the beneficiary was not taxable to the grantor. We do not construe the terms of the^trust before us as permitting the petitioner, the trustee, to devote the trust, income and…
2Cases cited3 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Banfield v. CommissionerUnited States Tax Court · 1944
- Wheelock v. CommissionerUnited States Tax Court · 1946
3Cited by1 opinion
- Hemphill v. CommissionerUnited States Tax Court · 1947