Hibbard, Spencer, Bartlett & Co. v. Commissioner

*470OPINION.

Murdock :

The petitioner contends and the respondent contravenes that under the stipulated facts in this case a valid trust was created, that it was thereafter a separate taxable entity and payments made *471to it were deductible from gross income of the petitioner as ordinary and necessary expenses of carrying on a trade or business. In arriving at a decision of this question the rules of law governing the creation of a trust must be examined and applied to these facts.

Perry on Trusts, 6th ed., section 82, states the law as follows:

Any agreement or contract in writing, made by a person…