Bendheim v. Commissioner
United States Board of Tax Appeals
1. A trustee's commissions which are attributable solely to receipt and disbursement of income are deductible from the gross income of the trust. 2. Neither capital losses incurred by a trust nor depreciation on capital assets of the trust may be deducted by a beneficiary of the trust from her gross income. 3. A life tenant is not taxable on gain made in a sale of the fee simple.
1Opinion of the Court
*163OPINION.
Milijken :
The trustees, including the widow, Henrietta Bend-heim, treated the trust estate as the individual property of the beneficiary. They charged her with depreciation and capital losses, and credited her with capital gains. Her income-tax return for 1920 was a reflection of this accounting; so also was the return of the trustees. Apparently the only exception to this procedure was that the trustees reported the gain arising from the sale of the residence at Deal Branch, N. J., and the beneficiary did not report it. This gain respondent shifted to the life tenant. It becomes our…
2Cases cited3 opinions
- Gibbons v. MahonSupreme Court of the United States · 1890
- United States Trust Co. v. . HeyeNew York Court of Appeals · 1918
- In Re the Accounting of MartinNew York Court of Appeals · 1909
3Cited by7 opinions
- Clinton L. Whittemore, Jr., and Anne W. Whittemore v. United StatesCourt of Appeals for the Eighth Circuit · 1967
- Adair v. CommissionerUnited States Board of Tax Appeals · 1941
- Bendheim v. CommissionerUnited States Board of Tax Appeals · 1927
- Hubbard v. CommissionerUnited States Board of Tax Appeals · 1940
- Huntington v. CommissionerUnited States Board of Tax Appeals · 1937
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