Backus v. Commissioner
United States Tax Court
1. Standish and Lotta Backus created a single trust in 1924, naming their 5 children as beneficiaries. The single trust was divided into 5 separate trusts, under the indenture provisions, on April 5, 1940, when the eldest child became 30 years of age. Until April 5, 1940, the trustee, could determine the amounts of income to be paid or used for any one or all of the beneficiaries.
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1. Standish and Lotta Backus created a single trust in 1924, naming their 5 children as beneficiaries. The single trust was divided into 5 separate trusts, under the indenture provisions, on April 5, 1940, when the eldest child became 30 years of age. Until April 5, 1940, the trustee, could determine the amounts of income to be paid or used for any one or all of the beneficiaries. Held, that because of this power to shift distribution of income, the trust income is taxable to the grantors under section 22 (a) during the taxable years up to April 5, 1940, under the Stockstrom case. 2. Held,…
1Opinion of the Court
Harron, Judge:
Respondent determined deficiencies in the income tax liability of Standish Backus, deceased, Docket No. 5280, for the years 1939, 1940, and 1941 in the respective amounts of $5,337.75, $5,336.29, and $5,466.48. The executors of the estate of Standish Backus contest the determination made by the respondent in each taxable year excepting the disallowance of a deduction in 1940 which was claimed as a contribution. Petitioners concede the disallowance of that deduction.
Respondent determined deficiencies in the income tax liability of Lotta B. Backus, Docket No. 5281, for the years…
2Cases cited4 opinions
- Newman v. CommissionerUnited States Tax Court · 1943
- Stockstrom v. CommissionerUnited States Tax Court · 1944
- Newman v. CommissionerUnited States Tax Court · 1945
- McCutchin v. CommissionerUnited States Tax Court · 1945
3Cited by7 opinions
- Arthur H. Ingle v. CommissionerUnited States Tax Court · 1949
- Tobin v. CommissionerUnited States Tax Court · 1948
- Backus v. CommissionerUnited States Tax Court · 1946
- Carman v. United StatesUnited States Court of Claims · 1948
- Hendrick v. CommissionerUnited States Tax Court · 1947
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