Raymond J. Dusek and Velma W. Dusek v. Commissioner of Internal Revenue

BREITENSTEIN, Circuit Judge.

Petitioners seek review of a Tax Court decision 1 disallowing deductions claimed on account of depreciation of property held in trust for the benefit of petitioner Velma Dusek.

Raymond Dusek created a trust in favor of Velma, his wife. Raymond was both the grantor of the trust and the trustee. The term of the trust was 10 years and one month. The trust agreement provided that the net income “may be distributed” to Velma when, in the discretion of the trustee, her needs required. Net income was all income from the trust property after payment of “all the necessary…