Johnston v. Commissioner
United States Tax Court
1. Petitioners are life income beneficiaries of inter vivos trusts created by their mother in 1921. In 1932 part of the corpus of the trusts consisted of undivided one-half interests in a bond and mortgage on certain real estate. In that year, because of default, the trustees foreclosed and bid in the mortgaged property and held it until January 11, 1937, when it was sold at a loss for cash and a purchase money bond and mortgage having a fair market value equal to par.
Read the full summary
1. Petitioners are life income beneficiaries of inter vivos trusts created by their mother in 1921. In 1932 part of the corpus of the trusts consisted of undivided one-half interests in a bond and mortgage on certain real estate. In that year, because of default, the trustees foreclosed and bid in the mortgaged property and held it until January 11, 1937, when it was sold at a loss for cash and a purchase money bond and mortgage having a fair market value equal to par. The trusts were governed by the laws of New York, under which laws the trustees were required to and did allocate to…
1Opinion of the Court
OPINION.
Black, Judge:
These proceedings involve three questions. The principal question is whether, for the taxable year 1937, there should be included in computing the net income of petitioners under section 162 (b)1 or 22 (a)2 of the Revenue Act of 1936, the amounts of $57,636.26 and, $57,637.11, respectively, representing that portion of the proceeds (cash and bond and mortgage), from the sale of trust property apportioned under New York law by the trustees to petitioners as life income beneficiaries of trusts which were created in 1921 by the mother of petitioners, which trusts were to be…
2Cases cited6 opinions
- Freuler v. HelveringSupreme Court of the United States · 1934
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Burnet v. WhitehouseSupreme Court of the United States · 1931
- In Re the Will of ChapalNew York Court of Appeals · 1936
- In Re the Accounting of Bankers Trust Company, as Trustee Under the Will of OtisNew York Court of Appeals · 1937
1 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Gloria M. Packard Polt, Estate of Robert L. Dula, Deceased v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1956
- Dula v. CommissionerUnited States Tax Court · 1955
- Warburton v. CommissionerUnited States Tax Court · 1958
- Burgwin v. CommissionerUnited States Tax Court · 1959
- Horn v. CommissionerUnited States Tax Court · 1945
10 more not listed; retrieve them via the Exa API.