Drew v. Commissioner
United States Tax Court
Taxpayer was principal and income beneficiary of a trust which terminated in 1947. At that time there remained unpaid certain commissions earned by the trustee-bank which were by the terms of the trust deductible from corpus before distribution to the beneficiary. The trustee-bank postponed collection of the commissions as an inducement to the beneficiary's leaving the corpus under the management of the bank as an agency account.
Read the full summary
Taxpayer was principal and income beneficiary of a trust which terminated in 1947. At that time there remained unpaid certain commissions earned by the trustee-bank which were by the terms of the trust deductible from corpus before distribution to the beneficiary. The trustee-bank postponed collection of the commissions as an inducement to the beneficiary's leaving the corpus under the management of the bank as an agency account. The bank retained the right to collect the commissions from the investments at the termination of the agency. In 1953 the agency was terminated and the beneficiary…
1Opinion of the Court
Tdstjens, Judge:
The Commissioner determined a deficiency in the income tax of James B. Drew, deceased, and Mary S. Drew for the year 1953 in the amount of $6,924.66. Two adjustments were made by the Commissioner, but only one of them was contested. We must decide whether a trustee’s fee paid in 1953 by Mary, who was the principal and income beneficiary of a trust which was terminated in 1947, is properly deductible on the joint income tax return for 1953 of Mary and James, deceased.
FINDINGS OF FACT.
Some of the facts were stipulated and are so found.
The petitioners are the Estates of James B.…
2Cases cited7 opinions
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Anderson v. WilsonSupreme Court of the United States · 1933
- Magruder v. SuppleeSupreme Court of the United States · 1942
- Hord v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1938
- Estate of Movius v. CommissionerUnited States Tax Court · 1954
2 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Drew v. CommissionerUnited States Tax Court · 1958
- Estate of Windsberg v. CommissionerUnited States Tax Court · 1978