Simon v. Commissioner
United States Board of Tax Appeals
Deductions by trustees from interest received on bonds purchased with trust funds are not income to taxpayer beneficiary, inasmuch as under the laws of the State of New York, the trustees were required to create a sinking fund out of interest paid to them on bonds, sufficient to make good upon their maturity the premium paid therefor, to the end that the principal of the trust fund might be preserved intact.
1Opinion of the Court
*1187OPINION.
Murdock :
The executors set aside in the taxable year $433.39 and deposited it in a sinking fund to amortize at maturity the premiums paid from'trust funds in the purchase of bonds above par.
*1188Section 219 (d) of the Revenue Act of 1921, provides as follows:
* * * There shall be included in computing the net income oí each beneficiary that part of the income of the estate or trust for its taxable year which, pursuant to the instrument or order governing the distribution, is distributable to such beneficiary, whether distributed or not, * * *.
Our problem is to determine whether or not the…
2Cases cited9 opinions
- Furniss v. . CruikshankNew York Court of Appeals · 1921
- In Re the Accounting of StevensNew York Court of Appeals · 1907
- New York Life Insurance & Trust Co. v. BakerNew York Court of Appeals · 1901
- New York Life Insurance & Trust Co. v. KaneAppellate Division of the Supreme Court of the State of New York · 1897
- Furniss v. CruikshankAppellate Division of the Supreme Court of the State of New York · 1920
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3Cited by2 opinions
- Chambers v. CommissionerUnited States Board of Tax Appeals · 1929
- Simon v. CommissionerUnited States Board of Tax Appeals · 1928