Downs v. Commissioner
United States Board of Tax Appeals
1. The grantor created a trust under which she retained no power to revoke or to have any of the income used for her benefit, ubt only the power to alter the distributive shares of principal and income of the beneficiaries of the classes named in the trust instrument.
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1. The grantor created a trust under which she retained no power to revoke or to have any of the income used for her benefit, ubt only the power to alter the distributive shares of principal and income of the beneficiaries of the classes named in the trust instrument. While the grantor reserved the power to alter the distributive shares of the beneficiaries, the proper construction of the trust instrument requires that all of the income and principal be paid over to some of the beneficiaries of the classes specified, and the grantor is without power to reduce all of the beneficial shares to a…
1Opinion of the Court
*1133OPINION.
Harron:
Respondent has conceded that petitioner properly deducted $5,000 from gross income which represented interest paid by petitioner on her indebtedness to a trust created by the will of her father. There is no issue remaining as to this item. The two remaining issues relate to whether petitioner is taxable on the net income of two trusts of which she was the grantor.
Respondent contends that the income of the first trust created in 1923 is taxable to the petitioner under the provisions of section 167 of the Revenue Act of 1934, quoted below.1 The first trust was created in 1923 by…
2Cases cited2 opinions
- Douglas v. WillcutsSupreme Court of the United States · 1935
- Helvering v. StokesSupreme Court of the United States · 1935
3Cited by13 opinions
- Stuart v. CommissionerCourt of Appeals for the Seventh Circuit · 1941
- Barbour v. CommissionerUnited States Board of Tax Appeals · 1939
- Branch v. CommissionerUnited States Board of Tax Appeals · 1939
- Buck v. CommissionerUnited States Board of Tax Appeals · 1940
- Downs v. CommissionerUnited States Board of Tax Appeals · 1937
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