Kaplan v. Commissioner
United States Board of Tax Appeals
1. Petitioner was the settlor and also the trustee of a trust for his wife, but if he survived her the trust income was to be paid to him. The trustee was given power to accumulate a reasonable portion of the trust income to be held for the benefit of those entitled to such income. held, the trust income was taxable to the petitioner under section 219(h) of the Revenue Act of 1924. 2. Petitioner paid $25,000 for one-fifth the common stock of a corporation.
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1. Petitioner was the settlor and also the trustee of a trust for his wife, but if he survived her the trust income was to be paid to him. The trustee was given power to accumulate a reasonable portion of the trust income to be held for the benefit of those entitled to such income. held, the trust income was taxable to the petitioner under section 219(h) of the Revenue Act of 1924. 2. Petitioner paid $25,000 for one-fifth the common stock of a corporation. It was mutually agreed that at the end of five years, at the option of either party, petitioner would return the stock and receive back…
1Opinion of the Court
*382OPINION.
MaRquette:
Petitioner was both the grantor and the trustee of a trust of which his wife was the primary beneficiary. Under the fourth provision of the declaration of trust the trustee is given full power to deal with the trust property as if he were the beneficial owner thereof, and to reserve a reasonable portion of the income. The same provision also declares that:
Any income accumulated by the Trustees under this Trust shall be held for the benefit oí the particular persons whoi were entitled to such income, and on their death for the benefit oí the person or persons who under this…
2Cited by2 opinions
- Dravo v. CommissionerUnited States Board of Tax Appeals · 1936
- Kaplan v. CommissionerUnited States Board of Tax Appeals · 1932