Freedman v. Commissioner
United States Board of Tax Appeals
In the taxable year petitioner was under a legal obligation to support his two children, who were under 18 years of age, and actually furnished their entire support out of his own funds. In that year his two children were the beneficiaries of two trusts under which the trustee had a discretionary power either to distribute the income to them or to accumulate the income, and the discretionary power was exercised by the trustee so that the income of the trusts was accumulated.
Read the full summary
In the taxable year petitioner was under a legal obligation to support his two children, who were under 18 years of age, and actually furnished their entire support out of his own funds. In that year his two children were the beneficiaries of two trusts under which the trustee had a discretionary power either to distribute the income to them or to accumulate the income, and the discretionary power was exercised by the trustee so that the income of the trusts was accumulated. Held, that in the taxable year petitioner's two children were "dependent upon" him within the meaning of section…
1Opinion of the Court
*1182OPINION.
HakroN:
The sole question is whether in the taxable year petitioner is entitled to a credit of $400 for each of his two children. The question arises under section 25 (b) (2) of the Revenue Act of 1936, the pertinent provisions of which are as follows:
There shall be allowed for the purposes of the normal tax and the surtax the following credits against net income:
[[Image here]]
*1183(2) Cheeet fob dependents. — $400 for each person (other than husband or wife) dependent upon and receiving his chief support from the taxpayer if such dependent person is under eighteen years of age or is…
2Cited by2 opinions
- Freedman v. CommissionerUnited States Board of Tax Appeals · 1941
- Stokes v. CommissionerUnited States Tax Court · 1949