Dula v. Commissioner
United States Tax Court
Sec. 162 (b), I. R. C. 1939 -- Income Currently Distributable -- Year of Taxability -- Estoppel. -- Decedent was the life income beneficiary of a trust, part of the corpus of which consisted of interests in bonds and mortgages on two pieces of real property. The trustee foreclosed the mortgages and in 1944 and 1945 sold the properties after having engaged in mortgage-salvage operations for a number of years.
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Sec. 162 (b), I. R. C. 1939 -- Income Currently Distributable -- Year of Taxability -- Estoppel. -- Decedent was the life income beneficiary of a trust, part of the corpus of which consisted of interests in bonds and mortgages on two pieces of real property. The trustee foreclosed the mortgages and in 1944 and 1945 sold the properties after having engaged in mortgage-salvage operations for a number of years. The consideration for the sale consisted partly of cash and partly of purchase money bonds and mortgages. The trustee allocated to decedent in May of 1945 a certain portion of the sales…
1Opinion of the Court
OPINION.
Tbetjens, Judge:
This case presents the often troublesome question of the proper year in which income is to be taxed.
Decedent was the life beneficiary of a trust and entitled to the net income therefrom. Part of the assets of the trust consisted of interests in bonds and mortgages on two pieces of real estate on which the mortgagors defaulted. The trustee foreclosed and took title, on the 45th Street property in 1934 and on the Gansevoort property in 1938. Thereafter, the trustee engaged in mortgage-salvage operations with respect of the properties and finally sold them in April 1945…
2Cases cited5 opinions
- Plunkett v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1941
- Johnston v. HelveringCourt of Appeals for the Second Circuit · 1944
- DeBrabant v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1937
- Johnston v. CommissionerUnited States Tax Court · 1942
- Commissioner of Internal Rev. v. First Trust & D. Co.Court of Appeals for the Second Circuit · 1941
3Cited by11 opinions
- Estate of Petschek v. CommissionerUnited States Tax Court · 1983
- Gloria M. Packard Polt, Estate of Robert L. Dula, Deceased v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1956
- Phillips v. CommissionerUnited States Tax Court · 1996
- Estate of Bruchmann, etc. v. CommissionerUnited States Tax Court · 1969
- Dula v. CommissionerUnited States Tax Court · 1955
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