Rogers v. Commissioner
United States Board of Tax Appeals
TRUSTS - DISTRIBUTABLE INCOME. - Where the testator left a plantation in trust to be operated for the benefit of and the income therefrom to be divided among several persons, and also provided that "the trustee shall retain out of proceeds of each year's crop sufficient to operate plantation the following year," the amounts retained by the trustee for said purpose were not distributed to nor distributable to the beneficiaries and were properly taxable as income of the trust…
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TRUSTS - DISTRIBUTABLE INCOME. - Where the testator left a plantation in trust to be operated for the benefit of and the income therefrom to be divided among several persons, and also provided that "the trustee shall retain out of proceeds of each year's crop sufficient to operate plantation the following year," the amounts retained by the trustee for said purpose were not distributed to nor distributable to the beneficiaries and were properly taxable as income of the trust and against the trustee.
1Opinion of the Court
*370OPINION.
Milliken:
The proper determination of this case requires a construction of the will and codicil of John D. Rogers, deceased, and the application of section 219 of the Revenue Acts of 1921 and 1924 to the facts.
By the terms of his will the testator created a trust and empowered the trustee to operate and manage his plantation and, after paying all costs and expenses, including taxes and trustee’s compensation, to pay over the remainder annually to the named beneficiaries. Under this provision of the will alone the entire balance of the year’s revenues after the payment of the expenses…
2Cited by6 opinions
- Frick v. DriscollCourt of Appeals for the Third Circuit · 1942
- Plant v. CommissionerUnited States Board of Tax Appeals · 1934
- McCrory v. CommissionerUnited States Board of Tax Appeals · 1932
- Plant v. CommissionerUnited States Board of Tax Appeals · 1934
- Plant v. CommissionerUnited States Board of Tax Appeals · 1934
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