Cushman v. Commissioner
United States Tax Court
Petitioner as grantor executed a trust agreement, with himself and wife as trustees, with broad powers of administrative control as trustees, and with broad reserved control in the grantor over sales of trust corpus and investment of trust funds. The trust corpus consisted solely of shares in a corporation in which petitioner was largely interested as shareholder and an official.
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Petitioner as grantor executed a trust agreement, with himself and wife as trustees, with broad powers of administrative control as trustees, and with broad reserved control in the grantor over sales of trust corpus and investment of trust funds. The trust corpus consisted solely of shares in a corporation in which petitioner was largely interested as shareholder and an official. Held, that the income of the trust is to be included in the income of the petitioner-grantor, under section 22 (a) of the Revenue Act of 1938 and Helvering v. Clifford, 309 U.S. 331.
1Opinion of the Court
OPINION.
Tyson, Judge:
Respondent determined that the net income of the “L. A. Cushman, Jr. Trust” in 1938 in the sum of $18,714.81 is taxable to the petitioner, grantor thereof, under the provisions of sections 22 (a), 166, and 167 of the Revenue Act of 1938. His only contentions are that the net income is taxable to the petitioner under sections 22 (a) and 167. We shall now consider respondent’s contention that the net income of the trust is taxable to petitioner under section 22 (a).
Paragraph 6 of the trust instrument provides that the trust is to be irrevocable and that the grantor “hereby…
2Cases cited6 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Rentschler v. CommissionerUnited States Tax Court · 1943
- Newman v. CommissionerUnited States Tax Court · 1943
- Marshall v. CommissionerUnited States Tax Court · 1943
- Stuart v. CommissionerUnited States Tax Court · 1943
1 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Loew v. CommissionerUnited States Tax Court · 1946
- Kohnstamm v. PedrickCourt of Appeals for the Second Circuit · 1945
- Black v. CommissionerUnited States Tax Court · 1945
- Black v. CommissionerUnited States Tax Court · 1945
- Cushman v. CommissionerUnited States Tax Court · 1944
4 more not listed; retrieve them via the Exa API.