McJunkin v. Commissioner
United States Tax Court
Decedent, during the years 1935 through 1944, received $ 29,250 for services rendered as a trustee; and of this sum he received $ 22,500 in the year 1944. He claimed the benefit of section 107 (a) of the Internal Revenue Code (1939) on the ground that, if the gross compensation received were reduced by certain expenses claimed to be applicable to his services as trustee, the net compensation received in 1944 would be more than 80 per cent of his total net compensation for…
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Decedent, during the years 1935 through 1944, received $ 29,250 for services rendered as a trustee; and of this sum he received $ 22,500 in the year 1944. He claimed the benefit of section 107 (a) of the Internal Revenue Code (1939) on the ground that, if the gross compensation received were reduced by certain expenses claimed to be applicable to his services as trustee, the net compensation received in 1944 would be more than 80 per cent of his total net compensation for all years. The trust indenture provided that expenses of a trustee were reimbursable to him from the trust, and the trust…
1Opinion of the Court
OPINION.
Pierce, Judge:
We approve respondent’s determination. Accordingly, we hold that the benefits of section 107 (a) of the Internal Eevenue Code (1939) are not available to the petitioner.
First, it is to be observed that section 107 (a) provides for allocation of compensation included in the gross income; whereas the petitioner seeks to reduce the decedent’s compensation to a net basis, by deduction of various claimed expenses. It is our opinion that this does not conform with the statute. Cf. Weldon D. Smith, 17 T. C. 135, 144, reversed on other grounds 203 F. 2d 310.
Secondly, the…
2Cases cited5 opinions
- Podems v. CommissionerUnited States Tax Court · 1955
- Commissioner of Internal Revenue v. SmithCourt of Appeals for the Second Circuit · 1953
- Smith v. CommissionerUnited States Tax Court · 1951
- Glendinning, McLeish & Co. v. Commissioner of Internal Rev.Court of Appeals for the Second Circuit · 1932
- Standard Oil Co. v. CommissionerUnited States Tax Court · 1948
3Cited by1 opinion
- McJunkin v. CommissionerUnited States Tax Court · 1955