Cherry v. Commissioner
United States Tax Court
Each petitioner created an irrevocable trust for the benefit of his spouse and children, naming himself as one of the trustees. During the lifetime of the grantor broad powers of management are vested in him as a trustee. No part of the corpus may be vested in the grantor and none of the income may be distributed to him or held for future distribution to him.
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Each petitioner created an irrevocable trust for the benefit of his spouse and children, naming himself as one of the trustees. During the lifetime of the grantor broad powers of management are vested in him as a trustee. No part of the corpus may be vested in the grantor and none of the income may be distributed to him or held for future distribution to him. Held that the income of the trust is not taxable to the grantor under Helvering v. Clifford, 309 U.S. 331, nor under section 166 or 167, I. R. C.
1Opinion of the Court
OPINION.
Mellott, Judge:
These consolidated proceedings involve deficiencies in income tax for the years 1939 and 1940 in the following amounts:
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All of the facts have been stipulated and are found accordingly. The sole issue is whether dividends paid by the Cherry-Burrell Corporation of Chicago, Illinois, upon some of its stock to trusts created by petitioners are includible in petitioners’ gross incomes.
Petitioners, sometimes hereinafter referred to as Herbert and Louise, are husband and wife and residents of Tama, Iowa. Each filed separate returns of income for the taxable years…
2Cases cited15 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. StuartSupreme Court of the United States · 1942
- Cartinhour v. CommissionerUnited States Tax Court · 1944
- Lowenstein v. CommissionerUnited States Tax Court · 1944
- Rentschler v. CommissionerUnited States Tax Court · 1943
10 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Jones v. CommissionerUnited States Tax Court · 1946
- Leonard v. CommissionerUnited States Tax Court · 1945
- Myer v. CommissionerUnited States Tax Court · 1946
- Tobin v. CommissionerUnited States Tax Court · 1948
- Whiteley v. CommissionerUnited States Tax Court · 1944
11 more not listed; retrieve them via the Exa API.