Brainard v. Commissioner of Internal Revenue

SPARKS, Circuit Judge.

This petition for review involves income taxes for the year 1928. The question presented is whether under the circumstances set forth in the findings of the Board of Tax Appeals, the taxpayer created a valid trust, the income of which was taxable to the beneficiaries under section 162 of the Revenue Act of 1928. 1

The facts as found by the Board of Tax Appeals are substantially as follows: In December, 1927, the taxpayer, having decided that conditions were favorable, contemplated trading in the stock market during 1928. He consulted a lawyer and was advised that it was…