Tracy v. Commissioner
United States Board of Tax Appeals
1. Amounts of trust income distributed pursuant to will to testator's widow, who took under will in lieu of dower, are deductible from gross income of trust; following Butterworth v. Commissioner,290 U.S. 365. 2. Amounts of gain upon sales of trust securities, distributable to widow but added to corpus by trustees, are not deductible from gross income because not paid or set aside within taxable year for charitable institutions, under will providing that residue of corpus,…
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1. Amounts of trust income distributed pursuant to will to testator's widow, who took under will in lieu of dower, are deductible from gross income of trust; following Butterworth v. Commissioner,290 U.S. 365. 2. Amounts of gain upon sales of trust securities, distributable to widow but added to corpus by trustees, are not deductible from gross income because not paid or set aside within taxable year for charitable institutions, under will providing that residue of corpus, upon death of life beneficiary and after establishment of directed family trusts, should be given to charities.
1Opinion of the Court
OPINION.
Goodbich :
In these proceedings, which were consolidated for hearing, petitioners contest the following income tax deficiencies determined by respondent:
1927_$2, 618. 24
1928_ 10, 384. 08
1929_ 10, 525. 53
Petitioners allege generally that respondent erred in determining that they received income on which they, as trustees, are liable for income tax. More specifically, the issues to be decided are two, and relate to the computation of the taxable income of the trust. They are, first, whether there shall bo deducted amounts distributed pursuant to the terms of his will to decedent’s widow,…
2Cases cited7 opinions
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Boston Safe Deposit & Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- McClung v. CommissionerUnited States Board of Tax Appeals · 1928
- Jaynes v. CommissionerUnited States Board of Tax Appeals · 1933
- Slocum v. CommissionerUnited States Board of Tax Appeals · 1927
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3Cited by4 opinions
- Guaranty Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Colt v. DugganDistrict Court, S.D. New York · 1938
- Canal National Bank v. United StatesDistrict Court, D. Maine · 1966
- Tracy v. CommissionerUnited States Board of Tax Appeals · 1934