Northern Trust Co. v. Commissioner
United States Tax Court
1. Under a will which sets up a trust in which the trustee is required to pay the beneficiary $ 12,000 a year from income if sufficient, or if not sufficient, then $ 500 a month in any event, invading the corpus if necessary to pay such $ 500 a month, held, the $ 500 a month was an annuity which is not deductible by the trustee, and the additional amount of $ 6,000 to make up the $ 12,000 a year is a distribution of income and is deductible. 2. Under another provision of the…
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1. Under a will which sets up a trust in which the trustee is required to pay the beneficiary $ 12,000 a year from income if sufficient, or if not sufficient, then $ 500 a month in any event, invading the corpus if necessary to pay such $ 500 a month, held, the $ 500 a month was an annuity which is not deductible by the trustee, and the additional amount of $ 6,000 to make up the $ 12,000 a year is a distribution of income and is deductible. 2. Under another provision of the will, the executrix was required to transfer to the trustee assets out of which to pay the said $ 500 a month and,…
1Opinion of the Court
OPINION.
Sternhagen, Judge:
In Docket No. 1648 the petitioner is transferee of the assets of the estate of Daniel Burkhartsmeier, deceased, and, while it does not dispute transferee liability for any deficiency of the estate, it assails the deficiency determined for 1940 of $153.38 income tax of the estate which resulted from two adjustments. It also contends that an overpayment in income tax was made by the estate because the estate had failed to take a deduction for $6,000 currently distributed in 1940. The two items upon which the deficiency was based have been settled and the only issue…
2Cases cited3 opinions
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Frankel v. CommissionerUnited States Tax Court · 1944
- Coleman Trust v. CommissionerUnited States Tax Court · 1944
3Cited by1 opinion
- Northern Trust Co. v. CommissionerUnited States Tax Court · 1945