Brenneman v. Commissioner
United States Board of Tax Appeals
1. Terms of a trust instrument construed to require distribution of net income, as used in the Revenue Acts, to the beneficiaries. 2. In computing net income for the purpose of distribution to beneficiaries, the trustees, under the facts in this case, may deduct amounts for depreciation and depletion of an oil-producing property comprising part of the trust, and the amounts so deducted are neither distributable nor taxable to the beneficiaries in the proportionate shares. 3.…
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1. Terms of a trust instrument construed to require distribution of net income, as used in the Revenue Acts, to the beneficiaries. 2. In computing net income for the purpose of distribution to beneficiaries, the trustees, under the facts in this case, may deduct amounts for depreciation and depletion of an oil-producing property comprising part of the trust, and the amounts so deducted are neither distributable nor taxable to the beneficiaries in the proportionate shares. 3. In computing net income of the trust for the purpose of distribution the trustees may not deduct the amount of a…
1Opinion of the Court
*551OPINION.
Love :
The first error assigned by the petitioners is that the respondent included in their respective taxable income for the years in question the amounts of depreciation and depletion deducted by the trustees from the gross income of the oil-producing property, no part of the amounts so deducted having been distributed to them. It is contended by the petitioners that the amounts deducted by the trustees were not distributable and, therefore, not taxable to them.
Section 219 of the Revenue Act of 1918, in part, provides:(a) That the tax imposed by sections 210 and 211 shall apply to…
2Cases cited2 opinions
- Follmer's AppealSupreme Court of Pennsylvania · 1860
- Hagerty v. AlbrightSupreme Court of Pennsylvania · 1866
3Cited by1 opinion
- Brenneman v. CommissionerUnited States Board of Tax Appeals · 1928