Legal Opinion

Andrus Trust v. Commissioner

United States Tax Court

Decided August 16, 1946No. Docket No. 7105Published

Where trustees paid or permanently set aside 45 per cent of the income of the trust for a charitable corporation in accordance with the instrument creating the trust, held, the entire amount so paid or set aside is deductible under section 162 (a), Internal Revenue Code, in computing the net taxable income of the trust, even though a large part of the trust income consisted of long term capital gains.

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Where trustees paid or permanently set aside 45 per cent of the income of the trust for a charitable corporation in accordance with the instrument creating the trust, held, the entire amount so paid or set aside is deductible under section 162 (a), Internal Revenue Code, in computing the net taxable income of the trust, even though a large part of the trust income consisted of long term capital gains. Old Colony Trust Co., 301 U.S. 379; Charles F. Grey, 41 B. T. A. 234, distinguished.

1Opinion of the Court

Trust Under Agreement Dated December 30, 1921, by John E. Andrus, Deceased (Trust No. 1), Central Hanover Bank and Trust Company, Hamlin F. Andrus and William H. Taylor, Trustees, Petitioners, v. Commissioner of Internal Revenue, Respondent

Andrus Trust v. Commissioner

Docket No. 7105

United States Tax Court

7 T.C. 573; 1946 U.S. Tax Ct. LEXIS 102;

August 16, 1946, Promulgated

Decision will be entered under Rule 50.

Where trustees paid or permanently set aside 45 per cent of the income of the trust for a charitable corporation in accordance with the instrument creating the trust, held, the entire…

2Cases cited4 opinions

  1. Helvering v. ButterworthSupreme Court of the United States · 1933
  2. Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1937
  3. Andrus Trust v. CommissionerUnited States Tax Court · 1946
  4. Tyler Trust CommissionerUnited States Tax Court · 1945

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