O'Laughlin v. Commissioner
United States Board of Tax Appeals
1. TRUST REVOCABLE AFTER TAXABLE YEAR. - Section 166 of the Revenue Act of 1934 applies where the grantor retained the right to revoke the trust after the close of the year 1934. 2. TRUST INCOME - TAXABLE TO GRANTOR. - Income of trusts taxable to grantor who had extensive control over and benefit from trusts, following Benjamin F. Wollman,31 B.T.A. 37, William C. Rands,34 B.T.A. 1107, and Warren H. Corning,36 B.T.A. 301. 3. DEDUCTION - LOSSES - SALES TO CLOSELY OWNED…
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1. TRUST REVOCABLE AFTER TAXABLE YEAR. - Section 166 of the Revenue Act of 1934 applies where the grantor retained the right to revoke the trust after the close of the year 1934. 2. TRUST INCOME - TAXABLE TO GRANTOR. - Income of trusts taxable to grantor who had extensive control over and benefit from trusts, following Benjamin F. Wollman,31 B.T.A. 37, William C. Rands,34 B.T.A. 1107, and Warren H. Corning,36 B.T.A. 301. 3. DEDUCTION - LOSSES - SALES TO CLOSELY OWNED CORPORATION. - A minority stockholder realized a deductible loss from the sale of securities to the corporation.
1Opinion of the Court
*1124OPINION.
Muedock :
The Commissioner has taxed the income of the six trusts to the grantor, the decedent in this case. The petitioner contends that no part of the income of the trusts is taxable to the decedent. It seems obvious that the income of the trusts for the year 1934 is taxable to the decedent under section 166 of the Revenue Act of 1934. That section is entitled “Revocable Trusts” and provides that “where at any time the power to revest in the grantor title to any part of the corpus of the trust is vested — (1) in the grantor * * * then the income of such part of the trust shall be…
2Cited by5 opinions
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- Nathan v. CommissionerUnited States Tax Court · 1943
- O'Laughlin v. CommissionerUnited States Board of Tax Appeals · 1938
- Penn v. CommissionerUnited States Board of Tax Appeals · 1939