Whiteley v. Commissioner
United States Board of Tax Appeals
Petitioner's brother transferred in trust for her benefit certain stock, part of which was owned by petitioner, insurance taken out on petitioner's life, and a note of petitioner. Two days later petitioner executed a reciprocal trust with shares of the same stock, part of which was owned by her brother, and a note of her brother.
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Petitioner's brother transferred in trust for her benefit certain stock, part of which was owned by petitioner, insurance taken out on petitioner's life, and a note of petitioner. Two days later petitioner executed a reciprocal trust with shares of the same stock, part of which was owned by her brother, and a note of her brother. Held, that the petitioner was the grantor of the trust executed by her brother and that the income of the trust, part of which was used by the trustee to pay premiums on the life insurance, is taxable to petitioner under the provisions of section 22(a), 166, and 167…
1Opinion of the Court
OPINION.
Disney:
These proceedings were consolidated for bearing and report and involve tbe redetermination of deficiencies in income tax in tbe amounts of $4,226.04, $4,607.88, and $2,770.80 for the respective years 1933, 1934, and 1935. All of tbe facts were stipulated. The issue is whether all of the income of a trust executed on May 19, 1932, by Beauchamp E. Smith is taxable to petitioner.
On May 19,1932, Beauchamp E. Smith, a brother of the petitioner, created a trust by transferring to the Western National Bank of York, Pennsylvania, as trustee, 20,000 shares of common stock and 6,000…
2Cases cited3 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Burnet v. WellsSupreme Court of the United States · 1933
- Horseshoe Mining Co. v. Miners' Ore Sampling Co.Court of Appeals for the Eighth Circuit · 1906
3Cited by4 opinions
- Krause v. CommissionerUnited States Tax Court · 1972
- Estate of Oliver v. CommissionerUnited States Tax Court · 1944
- Krause v. CommissionerUnited States Tax Court · 1972
- Whiteley v. CommissionerUnited States Board of Tax Appeals · 1940