Hubbard v. Commissioner
United States Board of Tax Appeals
1. Where in 1935 a part of the income of an estate in process of administration or settlement was credited upon the executors' books to the residuary legatees but used by the executors to pay state inheritance tax, the credit and paying being made on the same day, the estate may not in its income tax return for 1935 deduct from gross income the amounts credited to the legatees. 2. Executors' commissions are an expense of administration and a legal deduction from the gross…
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1. Where in 1935 a part of the income of an estate in process of administration or settlement was credited upon the executors' books to the residuary legatees but used by the executors to pay state inheritance tax, the credit and paying being made on the same day, the estate may not in its income tax return for 1935 deduct from gross income the amounts credited to the legatees. 2. Executors' commissions are an expense of administration and a legal deduction from the gross estate in the determination of the net estate subject to estate tax. Where, as here, they were a percentage of the income…
1Opinion of the Court
*631OPINION.
Smith:
The petitioners claim tbe deduction from the gross income of the estate for 1935 of $19,748.80 representing credits made to tbe beneficiaries of tbe estate. The deduction has been disallowed by tbe respondent.
The applicable provisions of tbe Revenue Act of 1934 are as follows :
SEC. 162. NET INCOME.
Tbe net income of tbe. estate or trust shall be computed in tbe same manner and on tbe same basis as in tbe case of an individual, except that—
‡ Sfc *(c) In tbe ease of income received by estates of deceased persons during tbe period of administration or settlement of tbe estate, and…
2Cited by4 opinions
- Estate of Margaret D. Love, Deceased Anne Love Hall Stanard T. Klinefelter v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1991
- Robert E. Harris and Dorothy H. Harris v. United StatesCourt of Appeals for the Fourth Circuit · 1966
- Harris v. United StatesDistrict Court, S.D. West Virginia · 1966
- Hubbard v. CommissionerUnited States Board of Tax Appeals · 1940