Horn v. Commissioner
United States Tax Court
Petitioner is the life beneficiary of a testamentary trust. The trust corpus included an undivided interest in certain real estate owned by testator at his death. During the years 1929 to 1940 the expenses of the trust incident to this real estate exceeded the income therefrom by approximately $ 6,500. These excess expenses were deducted from the other trust income before distributions were made to petitioner.
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Petitioner is the life beneficiary of a testamentary trust. The trust corpus included an undivided interest in certain real estate owned by testator at his death. During the years 1929 to 1940 the expenses of the trust incident to this real estate exceeded the income therefrom by approximately $ 6,500. These excess expenses were deducted from the other trust income before distributions were made to petitioner. In 1940, in an accounting of the trust and at the request of petitioner, the court having jurisdiction over the trust ordered that $ 6,500 (representing this accumulated excess of…
1Opinion of the Court
OPINION.
Keen, Judge:
The respondent has determined that the amount paid to petitioner in 1940 as beneficiary of a trust pursuant to a decree of the Orphans’ Court of Philadelphia County, Pennsylvania, is in-cludible in the gross income of petitioner for the taxable year 1940 under sections 22 (a) and 42 of the Internal Revenue Code. This amount represented the carrying charges of unproductive trust real estate accumulated for twelve years which had been deducted from the gross income of the trust and liad therefore in that amount reduced the income distributed to petitioner, the life…
2Cases cited3 opinions
- Levy's EstateSupreme Court of Pennsylvania · 1939
- Johnston v. CommissionerUnited States Tax Court · 1942
- Lewis v. CommissionerUnited States Tax Court · 1943
3Cited by1 opinion
- Horn v. CommissionerUnited States Tax Court · 1945