Simpson v. Commissioner
United States Board of Tax Appeals
REVOCABLE TRUSTS - INCOME TAXABLE TO GRANTOR. - By an indenture dated in 1923, petitioner created three trust estates, naming his sisters as the beneficiaries thereof. Petitioner reserved the right to terminate the trusts on the 31st day of December of any year subsequent to the year 1923 by giving 60 days' previous notice in writing to the trustee.
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REVOCABLE TRUSTS - INCOME TAXABLE TO GRANTOR. - By an indenture dated in 1923, petitioner created three trust estates, naming his sisters as the beneficiaries thereof. Petitioner reserved the right to terminate the trusts on the 31st day of December of any year subsequent to the year 1923 by giving 60 days' previous notice in writing to the trustee. Held, the income received by the trustee for the trust estate for the taxable calendar years 1927 and 1928 is taxable to petitioner, the grantor, under sections 219(g) and 166 of the Revenue Acts of 1926 and 1928, respectively. Clapp v. Heiner, 51…
1Opinion of the Court
OPINION.
Black :
This proceeding is for a redetermination of deficiencies in income tax for the calendar years 1927 and 1928 in the respective amounts of $16,639.74 and $6,070.25, determined against petitioner, an individual residing in Chicago, Illinois.
*1000The petition alleges that the entire amount of the deficiencies is in controversy. The parties, however, have filed a stipulation in which they agree that a certain item in the amount of $52,356.71 received by petitioner in 1927 should be taxed as a capital net gain at 1214 percent, and that the additional tax thereon is the amount of…
2Cases cited3 opinions
- Corliss v. BowersSupreme Court of the United States · 1930
- Reinecke v. SmithSupreme Court of the United States · 1933
- Ashforth v. CommissionerUnited States Board of Tax Appeals · 1932
3Cited by1 opinion
- Simpson v. CommissionerUnited States Board of Tax Appeals · 1934