Danz v. Commissioner
United States Tax Court
1. Exemption -- Section 101 (6) -- Trust Operating Regular Business. -- Congress, in section 101 (6), did not intend to include in the exempt class, as a fund or foundation organized and operated exclusively for charitable purposes, a trust not engaged in charitable work but earning the larger part of its income by the operation of regular substantial businesses, unrelated to the operation of any charity, even though its property must eventually go to corporations of the…
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1. Exemption -- Section 101 (6) -- Trust Operating Regular Business. -- Congress, in section 101 (6), did not intend to include in the exempt class, as a fund or foundation organized and operated exclusively for charitable purposes, a trust not engaged in charitable work but earning the larger part of its income by the operation of regular substantial businesses, unrelated to the operation of any charity, even though its property must eventually go to corporations of the type described in section 23 (o) (2). 2. Income -- Taxable to Grantor -- Charitable Trust -- Section 22 (a) -- Clifford…
1Opinion of the Court
OPINION.
Murdock, Judge:
One of the requirements for exemption under section 101 (6) is that the entity be “organized and operated exclusively for religious, onaritable, scientific, literary, or educational purposes.” Among the purposes of the present trust during the taxable years was that of making money from the operation of retail candy stores and a hotel. Those were regular substantial businesses which normally subject the owners to tax.1 They accounted for the larger part of the income of the trust and were in no sense merely incidental or even related to the operation of a charity. Cf.…
2Cases cited23 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Morrissey v. CommissionerSupreme Court of the United States · 1935
- Commissioner v. Lane-Wells Co.Supreme Court of the United States · 1944
- Germantown Trust Co. v. CommissionerSupreme Court of the United States · 1940
- C. F. Mueller Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1951
18 more not listed; retrieve them via the Exa API.
3Cited by61 opinions
- Durovic v. CommissionerUnited States Tax Court · 1970
- Marko Durovic v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1973
- Davis v. United StatesSupreme Court of the United States · 1990
- The John Danz Charitable Trust v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1956
- Edgar v. CommissionerUnited States Tax Court · 1971
56 more not listed; retrieve them via the Exa API.