Plant v. Commissioner
United States Board of Tax Appeals
1. A testamentary trust directed the trustees to maintain a certain residence for a beneficiary, son of the testator, so long as the son desired to occupy it. Held, expenditures so made by the trustees are not income to the son and not taxable against him. 2. A corporation having a surplus on March 1, 1913, to which donations by the stockholders were added, had operating losses, less than the surplus and donations but in excess of the total earnings and surplus.
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1. A testamentary trust directed the trustees to maintain a certain residence for a beneficiary, son of the testator, so long as the son desired to occupy it. Held, expenditures so made by the trustees are not income to the son and not taxable against him. 2. A corporation having a surplus on March 1, 1913, to which donations by the stockholders were added, had operating losses, less than the surplus and donations but in excess of the total earnings and surplus. Held, the operating deficit must be made good from earnings before distributions by the corporation to the stockholders are taxable.
1Opinion of the Court
*140OPINION.
Seawell:
The first issue we shall consider and determine is whether the amounts paid by the trustees under the will of Morton F. Plant for the upkeep of the home at Eastern Point, Connecticut, out of income from the trusts established by him, constitute income to the petitioner.
*141This issue arises out of paragraph tenth of Morton F. Plant’s will, which is set out in the findings of fact. The Commissioner determined that the expense of maintaining the residence as provided in the will was additional income to the petitioner, who was thereby relieved of such expense on the residence…
2Cases cited5 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Sparrow v. CommissionerUnited States Board of Tax Appeals · 1929
- Stifel v. CommissionerUnited States Board of Tax Appeals · 1934
- Rogers v. CommissionerUnited States Board of Tax Appeals · 1929
3Cited by2 opinions
- Van Norman Co. v. WelchCourt of Appeals for the First Circuit · 1944
- Plant v. CommissionerUnited States Board of Tax Appeals · 1934