Newman v. Commissioner
United States Tax Court
Petitioner's minor daughter and son were the respective life income beneficiaries of two trusts created by her during the tax year. Petitioner's husband, the trustee, was the remainderman and the donee of a power to appoint the remainders in the event he predeceased the life beneficiaries. He also possessed the power to alter, amend, or revoke.
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Petitioner's minor daughter and son were the respective life income beneficiaries of two trusts created by her during the tax year. Petitioner's husband, the trustee, was the remainderman and the donee of a power to appoint the remainders in the event he predeceased the life beneficiaries. He also possessed the power to alter, amend, or revoke. Held, the income of the trusts is not taxable to petitioner, under section 22 (a), 166, or 167 of the Internal Revenue Code, with the exception of dividends that had been declared payable to stockholders of record on or before June 28, 1940, the date…
1Opinion of the Court
OPINION.
ARundell, Judge:
Respondent on brief has run the full gamut of provisions and theories under which trust income may be taxed to a grantor. Since we are of opinion that the income of the present trusts, with the exception hereinafter noted, is not taxable to petitioner, it is necessary to state briefly our reasons why we consider each provision inapplicable.
1. Section 166 of the Internal Revenue Code1 is operative only if the power to revest corpus in the grantor is vested in the grantor or “in any person not having a substantial adverse interest in the disposition of such part of the…
2Cases cited12 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Helvering v. HorstSupreme Court of the United States · 1940
- Helvering v. StuartSupreme Court of the United States · 1942
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Carrier v. . CarrierNew York Court of Appeals · 1919
7 more not listed; retrieve them via the Exa API.
3Cited by32 opinions
- Gordon v. CommissionerUnited States Tax Court · 1985
- Loew v. CommissionerUnited States Tax Court · 1946
- Trust under the Last Will & Testament of McDonald v. CommissionerUnited States Tax Court · 1953
- Newman v. CommissionerUnited States Tax Court · 1945
- Wheelock v. CommissionerUnited States Tax Court · 1946
27 more not listed; retrieve them via the Exa API.