Biddle v. Commissioner
United States Tax Court
1. The trustees of a testamentary trust established for the benefit of petitioner received in 1937 as a dividend on certain shares of Newmont Mining Corporation stock held by the trust 1,591 shares of the common stock of the Phelps Dodge Corporation. This stock was allocated by the trustees to trust corpus and the income tax thereon was paid by the trust.
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1. The trustees of a testamentary trust established for the benefit of petitioner received in 1937 as a dividend on certain shares of Newmont Mining Corporation stock held by the trust 1,591 shares of the common stock of the Phelps Dodge Corporation. This stock was allocated by the trustees to trust corpus and the income tax thereon was paid by the trust. Held, the 1,591 shares of Phelps Dodge stock, under the provisions of the trust instrument and New York law, were properly allocated by the trustees to trust principal and did not constitute currently distributable income taxable to the…
1Opinion of the Court
Arundell, Judge’.
This proceeding involves an income tax deficiency of $135,097.15 for the taxable year ended December 31, 1937, the amount in controversy being approximately $128,716.38.
Two issues are presented for our determination. The first concerns the question of whether a dividend consisting of stock, which was received by the trustees of a testamentary trust, was properly allocated to the trust corpus and taxable to the trust, or constituted currently distributable income taxable to the income beneficiary, Margaret T. Biddle, within the meaning of section 162 (b) of the Revenue Act of…
Also in this document: Concurrence.
2Cases cited17 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Morgan v. CommissionerSupreme Court of the United States · 1940
- Lyeth v. HoeySupreme Court of the United States · 1938
- Helvering v. StuartSupreme Court of the United States · 1942
- Freuler v. HelveringSupreme Court of the United States · 1934
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3Cited by16 opinions
- Donald Merino Rosemarie Merino v. Commissioner of Internal Revenue, DefendentsCourt of Appeals for the Third Circuit · 1999
- Corning v. CommissionerUnited States Tax Court · 1955
- Brown v. CommissionerUnited States Tax Court · 1958
- Goodan v. CommissionerUnited States Tax Court · 1949
- Great American Indem. Co. v. CommissionerUnited States Tax Court · 1952
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