Clark v. Commissioner
United States Board of Tax Appeals
1. The income from an irrevocable trust created by a father for the benefit of his minor child, which income, by the terms of the trust, is to be expended as it accrues "for the maintenance, education, and support of the beneficiary", is not taxable to the father under section 162(b), Revenue Act of 1928, as the father is not a beneficiary of the trust. 2. The sole stockholder of a corporation requested it to transfer assets to a trust created by him, and the transfer, which…
Read the full summary
1. The income from an irrevocable trust created by a father for the benefit of his minor child, which income, by the terms of the trust, is to be expended as it accrues "for the maintenance, education, and support of the beneficiary", is not taxable to the father under section 162(b), Revenue Act of 1928, as the father is not a beneficiary of the trust. 2. The sole stockholder of a corporation requested it to transfer assets to a trust created by him, and the transfer, which wiped out the surplus, was made upon authorization of its directors. Held, the transaction amounted to the distribution…
1Opinion of the Court
OPINION.
Murdock :
Tbe Commissioner determined a deficiency of $2,355.91 in the petitioner’s income tax for 1929. Tbe errors assigned are:
1. The inclusion in tbe petitioner’s gross income of tbe income of four irrevocable trusts established by tbe petitioner for four of his children who were minors.
2. The inclusion in the petitioner’s gross income of $15,029.14 as a dividend from a corporation of which he was the sole stockholder.
The facts have been stipulated.
*1083The petitioner is an individual, residing in Pennsylvania. On December SO, 1924, be executed a deed of trust creating irrevocable trusts…
2Cases cited1 opinion
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
3Cited by17 opinions
- Sachs v. CommissionerUnited States Tax Court · 1959
- Edgar v. CommissionerUnited States Tax Court · 1971
- Epstein v. CommissionerUnited States Tax Court · 1969
- Brittingham v. CommissionerUnited States Tax Court · 1976
- C. F. Mueller Co. v. CommissionerUnited States Tax Court · 1970
12 more not listed; retrieve them via the Exa API.