Davis v. Commissioner
United States Board of Tax Appeals
1. In 1929 the petitioner, trustee of the estate of Otto Ernst Isenberg, received $287,323.40 from the former trustee of the estate in payment of a judgment against said trustee for breach of trust in connection with the sale of certain shares of stock which were a part of the trust corpus. The amount of the judgment consisted of the value of the stock at the time of the trial plus a surcharge representing the dividends paid thereon after the sale.
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1. In 1929 the petitioner, trustee of the estate of Otto Ernst Isenberg, received $287,323.40 from the former trustee of the estate in payment of a judgment against said trustee for breach of trust in connection with the sale of certain shares of stock which were a part of the trust corpus. The amount of the judgment consisted of the value of the stock at the time of the trial plus a surcharge representing the dividends paid thereon after the sale. Held, that the amount of the judgment is income to the trust, which, except the surcharge, was not distributable to the beneficiaries as it…
1Opinion of the Court
*1013OPINION.
MoRRis:
Petitioner Davis received $387,406.40 on June 21, 1929, being the sum of a judgment for $287,323.40 rendered against the Trust Co. growing out of the sale by the Alien Property Custodian on Januarv 17,1919, of certain corporate shares — 500 shares in which the decedent’s widow had a life interest and 170 shares seized as the property of Paul — and $100,083, being the amount of interest upon such judgment as found by the court to be due. The first and principal issue relates to the inclusion of this judgment money in taxable income for the year in which received.
The argument of…
2Cases cited3 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Gould v. GouldSupreme Court of the United States · 1917
- In Re the Estate of IsenbergHawaii Supreme Court · 1925
3Cited by3 opinions
- Davis v. CommissionerUnited States Board of Tax Appeals · 1937
- Lang v. CommissionerUnited States Board of Tax Appeals · 1941
- Ryan v. CommissionerUnited States Tax Court · 1949