Solomon v. Commissioner
United States Tax Court
Undistributable capital gains earned by an irrevocable trust in 1950 are not taxable under facts of case to the grantor-life beneficiary of the trust who retained (1) limited power to invade the corpus, (2) a right to alter the shares of a designated class of remaindermen, (3) a contingent right to dispose of the trust corpus by will if she survived her mother, her issue, and their children, and (4) the right to become co-trustee with broad managerial powers to act as a…
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Undistributable capital gains earned by an irrevocable trust in 1950 are not taxable under facts of case to the grantor-life beneficiary of the trust who retained (1) limited power to invade the corpus, (2) a right to alter the shares of a designated class of remaindermen, (3) a contingent right to dispose of the trust corpus by will if she survived her mother, her issue, and their children, and (4) the right to become co-trustee with broad managerial powers to act as a fiduciary.
1Opinion of the Court
OPINION.
Kern, Judge:
The sole question now before us for decision is whether under the somewhat peculiar facts of the instant case the petitioner, who was the settlor, life beneficiary, and co-trustee of a trust, should he taxed under section 22 (a) of the Internal Revenue Code of 1939 on the capital gains, which were realized by that trust in 1950 and which were neither distributed nor distributable to her as such life beneficiary under the laws of the jurisdiction in which the trust was administered. Hutchison v. Boss, 262 N. Y. 381; In re Bank of Richmondville, et al., 259 App. Div. 4,…
2Cases cited9 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Hutchison v. RossNew York Court of Appeals · 1933
- Commissioner of Internal Revenue v. BuckCourt of Appeals for the Second Circuit · 1941
- Commissioner of Internal Revenue v. BatemanCourt of Appeals for the First Circuit · 1942
- In re the Bank of RichmondvilleAppellate Division of the Supreme Court of the State of New York · 1940
4 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Solomon v. CommissionerUnited States Tax Court · 1956