Burt v. Commissioner
United States Tax Court
Decedent created a testamentary trust, directing the trustee to pay annually specified amounts to named beneficiaries for life, and to use principal if income should be insufficient. In 1942 and 1943 the trust received taxable and tax-exempt income, the amount of each type being in excess of the specified payments. The trustee made the payments to the surviving beneficiaries, and, in computing net income, deducted the full amount of them.
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Decedent created a testamentary trust, directing the trustee to pay annually specified amounts to named beneficiaries for life, and to use principal if income should be insufficient. In 1942 and 1943 the trust received taxable and tax-exempt income, the amount of each type being in excess of the specified payments. The trustee made the payments to the surviving beneficiaries, and, in computing net income, deducted the full amount of them. The Commissioner disallowed deduction of a percentage of the aggregate payments equal to the percentage of tax-exempt income in the trust's total income…
1Opinion of the Court
Estate of W. R. Burt Trusts No. 27 and 27A, Second National Bank & Trust Company of Saginaw, Trustee, Petitioner, v. Commissioner of Internal Revenue, Respondent
Burt v. Commissioner
Docket No. 19473
United States Tax Court
12 T.C. 675; 1949 U.S. Tax Ct. LEXIS 217;
April 29, 1949, Promulgated
Decision will be entered for the respondent.
Decedent created a testamentary trust, directing the trustee to pay annually specified amounts to named beneficiaries for life, and to use principal if income should be insufficient. In 1942 and 1943 the trust received taxable and tax-exempt income, the amount of…
2Cases cited3 opinions
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Stewart v. CommissionerUnited States Tax Court · 1947
- Burt v. CommissionerUnited States Tax Court · 1949