Morgan v. Commissioner
United States Tax Court
The decedent established certain irrevocable trusts in stock of the Morgan Engineering Company. The trust instrument provided that the trustees should pay any Federal gift tax liability of the settlor arising out of the creation of the trusts. It further empowered the trustees to obtain funds to pay the tax by selling corpus or by borrowing, using the corpus as security.
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The decedent established certain irrevocable trusts in stock of the Morgan Engineering Company. The trust instrument provided that the trustees should pay any Federal gift tax liability of the settlor arising out of the creation of the trusts. It further empowered the trustees to obtain funds to pay the tax by selling corpus or by borrowing, using the corpus as security. The trustees borrowed the amount necessary from a bank and paid the tax in 1956. The loan was repaid from income of the trusts. The respondent determined that the income of the trusts used to repay the loan in 1957 and 1958…
1Opinion of the Court
Fat, Judge:
Tbe Commissioner determined deficiences in income tax of the decedent for tbe years 1957 and 1958 in tbe amounts of $13,238.26 and $26,686.82, respectively. The only issue for decision is whether certain income of trusts created by tbe decedent is taxable to her.
BINDINGS OP PACT.
Most of the facts are stipulated and are found as stipulated.
The decedent resided during the taxable years in question in the city of Cleveland, Ohio. She filed timely Federal income tax returns for these years with the district director of internal revenue at Cleveland.
On October 18, 1955, the decedent…
2Cases cited2 opinions
- Sheaffer v. CommissionerUnited States Tax Court · 1961
- Keith v. CommissionerUnited States Board of Tax Appeals · 1941
3Cited by21 opinions
- Furman v. CommissionerUnited States Tax Court · 1966
- Turner v. CommissionerUnited States Tax Court · 1968
- Hirst v. CommissionerUnited States Tax Court · 1974
- Estate of Henry v. CommissionerUnited States Tax Court · 1978
- Krause v. CommissionerUnited States Tax Court · 1971
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