Chertoff v. Commissioner
United States Tax Court
Petitioners, husband and wife, each created a trust for the benefit of each of their three children, naming themselves as trustees. The assets of the trusts consisted of interests in a business operated by the husband. The powers and discretion conferred upon the trustees in respect of the trusts, their investments, administration, and termination were comprehensive and absolute.
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Petitioners, husband and wife, each created a trust for the benefit of each of their three children, naming themselves as trustees. The assets of the trusts consisted of interests in a business operated by the husband. The powers and discretion conferred upon the trustees in respect of the trusts, their investments, administration, and termination were comprehensive and absolute. Held, the income of the trusts is taxable to the respective grantors under the principle announced in Helvering v. Clifford, 309 U.S. 331.
1Opinion of the Court
OPINION.
Hill, Judge:
The first issue is whether the petitioners are taxable on the income of the trusts created by them in 1937 and 1940. If respondent is correct in his contention that the petitioners are so taxable, we need not consider whether they are likewise so taxable in 1940 and 1941 under the partnership aspects of the case. Respondent contends that the petitioners are taxable on the income of these trusts under section 22 (a), Internal Revenue Code, as construed in Helvering v. Clifford, 309 U. S. 331, and that in any event the income is taxable to them under sections 166 and 167 of…
2Cases cited5 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. Estate of HolmesSupreme Court of the United States · 1946
- Lowenstein v. CommissionerUnited States Tax Court · 1944
- Morgan v. CommissionerUnited States Tax Court · 1945
- Eisenberg v. CommissionerUnited States Tax Court · 1945
3Cited by16 opinions
- United States v. ZacksSupreme Court of the United States · 1963
- Green v. CommissionerUnited States Tax Court · 1946
- Shapero v. CommissionerUnited States Tax Court · 1947
- Friedman v. CommissionerUnited States Tax Court · 1946
- Richards v. CommissionerUnited States Tax Court · 1952
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