Blumenthal v. Commissioner
United States Board of Tax Appeals
1. A taxpayer in debt upon a loan secured by corporate shares pledged as collateral, transfers the shares irrevocably to a trustee with direction that certain income therefrom shall be used to pay the debt as soon as received.
Read the full summary
1. A taxpayer in debt upon a loan secured by corporate shares pledged as collateral, transfers the shares irrevocably to a trustee with direction that certain income therefrom shall be used to pay the debt as soon as received. Held, the taxpayer is a beneficiary of the trust, taxable upon such income as being currently distributable to him when used to pay his debt. 2. A woman transfers corporate shares irrevocably to a trustee with direction that income therefrom shall be used to pay premiums on insurance upon her husband's life. Held, the income is not taxable to her.
1Opinion of the Court
*592OPINION.
Sternhagen:
The Commissioner determined a deficiency of $7,541.47 in petitioner’s individual income tax for 1929. He added to the net income which she reported on her individual return an amount of dividends on corporate shares which had theretofore been transferred by her in trust, and this she contests. The facts are all contained in a written stipulation, which, omitting the appended exhibits, is as follows:
•1. On January 16, 1929, Lucy A. Blumenthal, the petitioner herein, being the owner of three thousand shares of the par value of $100. each of cumulative preferred stock of…
2Cases cited1 opinion
- Burnet v. WellsSupreme Court of the United States · 1933
3Cited by11 opinions
- Sheaffer v. CommissionerUnited States Tax Court · 1961
- W. Sam Edwards, Administrator of the Estate of Marion H. Allen, Former Collector of Internal Revenue v. Mrs. Dorothy Dannenberg GreenwaldCourt of Appeals for the Fifth Circuit · 1954
- Wiles v. CommissionerUnited States Tax Court · 1972
- Brooks v. CommissionerUnited States Board of Tax Appeals · 1934
- Baldwin v. CommissionerUnited States Board of Tax Appeals · 1937
6 more not listed; retrieve them via the Exa API.