Morgan v. Commissioner
United States Tax Court
Petitioners owned 99 percent of the stock of a corporation. They transferred shares of nonvoting common stock to a trust, naming their sons as trustees, the income to be paid for 20 years to a charitable trust previously created, the remainder to go to the heirs of the donors. The trust deed contained no provisions guaranteeing income to the charity.
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Petitioners owned 99 percent of the stock of a corporation. They transferred shares of nonvoting common stock to a trust, naming their sons as trustees, the income to be paid for 20 years to a charitable trust previously created, the remainder to go to the heirs of the donors. The trust deed contained no provisions guaranteeing income to the charity. Held, deductions and exclusions for the gift of stock claimed on petitioners' income and gift tax returns are not allowable, since income to the charity depends on dividends which are within petitioners' control. Income Tax Regs., sec.…
1Opinion of the Court
Bruce, Judge:
The respondent determined deficiencies in gift tax and income tax for the calendar years 1958 and 1959 as follows:
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The cases were consolidated. The principal issue arises from the disallowance of deductions and exclusions claimed on the gift tax and income tax returns for contributions of a 20-year income interest to a trust for charitable, religious, and educational purposes.
A second issue, arising in the computation of the specific exemption allowable, involves the question whether a gift to a trust created in 1955 was the gift of a future interest. This issue is…
2Cases cited9 opinions
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Marie H. Hamm v. Commissioner of Internal Revenue, William Hamm, Jr. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
- Commissioner v. Estate of SternbergerSupreme Court of the United States · 1955
- Fondren v. CommissionerSupreme Court of the United States · 1945
- Commissioner v. DisstonSupreme Court of the United States · 1945
4 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Lera H. Stark v. United States of America, William P. Stark v. United StatesCourt of Appeals for the Eighth Circuit · 1973
- Darling v. CommissionerUnited States Tax Court · 1965
- Maryland National Bank and Ralph Norris, Personal Representatives of the Estate of Katherine L. N. Willis, Deceased v. United StatesCourt of Appeals for the Fourth Circuit · 1980
- Heidrich v. CommissionerUnited States Tax Court · 1971
- Rosen v. CommissionerUnited States Tax Court · 1967
15 more not listed; retrieve them via the Exa API.