Geary v. Commissioner
United States Tax Court
The taxpayer, life beneficiary of a Pennsylvania trust which owned unproductive realty, in 1942 procured a court decree holding that the trustee had improperly paid the carrying charges on such property from trust income instead of from principal and awarding to the life beneficiaries amounts equal to the income so used during the years 1929-1940. The trustee also used trust income to pay such carrying charges in 1941, 1942, and 1943. The Commissioner included in the…
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The taxpayer, life beneficiary of a Pennsylvania trust which owned unproductive realty, in 1942 procured a court decree holding that the trustee had improperly paid the carrying charges on such property from trust income instead of from principal and awarding to the life beneficiaries amounts equal to the income so used during the years 1929-1940. The trustee also used trust income to pay such carrying charges in 1941, 1942, and 1943. The Commissioner included in the taxpayer's taxable income the amounts paid to her by the trustee in conformity with the court's decree. Held: (1) The increased…
1Opinion of the Court
OPINION.
Johnson, Judge-.
The Commissioner determined a deficiency of $1,505.31 in petitioner’s income tax for 1941, and, with adjustments for 1942, a deficiency of $8,417.75 for 1943. Petitioner assails the inclusion in income of amounts which were distributed to her as the life beneficiary of a trust in accordance with a court decision that trust principal be used for payments of carrying charges on unproductive trust-held realty instead of income, which the trustee had used for that purpose since 1929. She contends that the amounts awarded to her as a consequence constituted á nontaxable…
2Cases cited1 opinion
- Tyler v. CommissionerUnited States Tax Court · 1946
3Cited by8 opinions
- Beck v. CommissionerUnited States Tax Court · 1950
- Rowe v. CommissionerUnited States Tax Court · 1955
- Beck v. CommissionerUnited States Tax Court · 1950
- Estate of Bruchmann, etc. v. CommissionerUnited States Tax Court · 1969
- Estate of Bruchmann, etc. v. CommissionerUnited States Tax Court · 1969
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