Laflin v. Commissioner

ALSCHULER, Circuit Judge.

These appeals present the single question: Whether petitioner, out of the income to her as beneficiary under a trust created by the will of her deceased husband, was entitled to withhold from taxation an amount which she, as the trustee, annually set apart as a depreciation reserve upon a valuable commercial building in Chicago which belonged to the trust estate.

The will named petitioner as trustee upon trusts of which the parts here material appear in the margin.1 The amounts so set apart as depreciation were invested and held by the trustee as a part of the capital…