Effler v. Commissioner
United States Board of Tax Appeals
Held, upon the evidence, that a portion of petitioner's share of partnership earnings which was actually distributed to petitioner after actual receipt of the whole of such earnings by the partnership was taxable to the petitioner in the year in which it was distributed, notwithstanding that out of deference to another of the partners such portion was in that year placed in trust for the protection of such other partner against certain contingent liabilities, the petitioner…
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Held, upon the evidence, that a portion of petitioner's share of partnership earnings which was actually distributed to petitioner after actual receipt of the whole of such earnings by the partnership was taxable to the petitioner in the year in which it was distributed, notwithstanding that out of deference to another of the partners such portion was in that year placed in trust for the protection of such other partner against certain contingent liabilities, the petitioner all the while receiving and returning the income from the corpus of the trust.
1Opinion of the Court
*794OPINION.
McMahon:
We are here called upon to determine whether the respondent erred in including in the taxable income of the petitioner for the year 1926 the amount of $60,000 constituting a part of the amount of $285,533.33. This item of $285,533.33 is the aggregate of amounts which were actually paid by certain trusts to the partnership of Smith, Baker, Effler & Eastman in the year 1926, and constituted either fees to Smith and Baker, two of the members of the partnership, for their services as trustees, or such trustees’ fees and, in addition, fees to the partnership for legal services. The…
2Cases cited12 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Mesta Machine Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- Cleveland R. Co. v. CommissionerUnited States Board of Tax Appeals · 1928
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3Cited by1 opinion
- Effler v. CommissionerUnited States Board of Tax Appeals · 1934