Chambers v. Commissioner
United States Board of Tax Appeals
Where under the state law capital gain from the sale of stock becomes part of the corpus and is not distributable to the beneficiaries as income from the trust estate, and under the terms of the will corpus is distributable only at the discretion of the trustees, capital gain so realized is taxable to the trust estate whether distributed or not.
1Opinion of the Court
*1127OPINION.
ARNOLD:
The question here before us is whether the capital gain of $9,913.85 from the sale of securities is taxable to the petitioners. This question is controlled by the will of Fred N. Chambers and the laws of Pennsylvania applicable thereto.
The petitioners considered that the entire net income of the estate— including the gain from the sale of corpus — was yearly distributable to the two beneficiaries in equal amounts and they made the return for the estate on. that basis, using form 1041.
The respondent considered that the profits from the sale of the corpus of the estate were not…
2Cases cited3 opinions
- Irwin v. GavitSupreme Court of the United States · 1925
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Burnet v. WhitehouseSupreme Court of the United States · 1931
3Cited by6 opinions
- Simon v. HoeyDistrict Court, S.D. New York · 1949
- Weigel v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1938
- Chambers v. CommissionerUnited States Board of Tax Appeals · 1936
- Estate of Burchenal v. CommissionerUnited States Tax Court · 1944
- Lehigh Valley Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1936
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