Moore Trust v. Commissioner
United States Tax Court
Trustee of petitioner was the defendant in a State court litigation brought by the beneficial remaindermen of petitioner to have their interests accelerated following the renunciation by the life income beneficiary of part of her interest. The complaint in the State court action prayed that the trustee be ordered to set up separate trusts of equal amount for the respective benefit of each remainderman.
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Trustee of petitioner was the defendant in a State court litigation brought by the beneficial remaindermen of petitioner to have their interests accelerated following the renunciation by the life income beneficiary of part of her interest. The complaint in the State court action prayed that the trustee be ordered to set up separate trusts of equal amount for the respective benefit of each remainderman. The court decided adversely to the remaindermen's claim, which decision was affirmed on appeal. However, the court, in accordance with State law, charged the legal expenses of all the parties…
1ConcurrenceTannenwald, J.
I think the use of a “primary purpose’5, test in cases of this type is inappropriate, because it implies that the subjective intent of the parties ought to be taken into account. I believe that, in the area of litigation expenses, it is “the origin and character of the claim with respect to which [the] expense was incurred” which controls. See United States v. Gilmore, 372 U.S. 39, 49 (1963). The rationale which underpins this mandate of the Supreme Court is equally applicable in determining whether an expenditure is a nondeductible capital item or a deductible expense within the purview of…
2Cases cited8 opinions
- United States v. GilmoreSupreme Court of the United States · 1963
- Beck v. CommissionerUnited States Tax Court · 1950
- Manufacturers Hanover Trust Company, as Trustee Under Indenture Dated November 15, 1927, Made by Henry H. Rogers, Deceased v. The United StatesUnited States Court of Claims · 1963
- Tyler v. CommissionerUnited States Tax Court · 1946
- Bartholomew v. CommissionerUnited States Tax Court · 1944
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