Franks v. Commissioner
United States Board of Tax Appeals
Under the terms of a testamentary distributable trust on the cash receipts and disbursements basis, the trustee set aside in the tax year an amount equal to the estimated liability of the trust for real estate taxes due for the preceding year, which, under the peculiar facts and circumstances existing, could not be paid in the year when due.
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Under the terms of a testamentary distributable trust on the cash receipts and disbursements basis, the trustee set aside in the tax year an amount equal to the estimated liability of the trust for real estate taxes due for the preceding year, which, under the peculiar facts and circumstances existing, could not be paid in the year when due. Evidence established that the trustee did not, in the tax year, pay these taxes or distribute or credit any part of the amount set aside to a beneficiary who was also on the cash basis. Held, the trustee was authorized to withhold from beneficiaries of…
1Opinion of the Court
OPINION.
Black :
In this proceeding petitioner assails a deficiency in income tax in the amount of $889.79 determined by the respondent for the calendar year 1929. The sole issue presented for our decision is whether any portion of a fund set aside by a trustee in 1929 for payment of 1928 real estate taxes on trust properties constitutes income currently distributable and taxable to a beneficiary of the trust, where the trustee, who kept his books and filed his returns on the cash receipts and disbursements basis, did not pay these taxes in 1929 and did not distribute or credit any portion of…
2Cases cited5 opinions
- Freuler v. HelveringSupreme Court of the United States · 1934
- Merchants' Loan & Trust Co. v. SmietankaSupreme Court of the United States · 1921
- Anderson v. WilsonSupreme Court of the United States · 1933
- City of Bangor v. PeirceSupreme Judicial Court of Maine · 1910
- In Re Trusteeship Under Last Will of HarrisSupreme Court of Minnesota · 1927
3Cited by3 opinions
- Frick v. DriscollCourt of Appeals for the Third Circuit · 1942
- Franks v. CommissionerUnited States Board of Tax Appeals · 1935
- Saltonstall v. HassettDistrict Court, D. Massachusetts · 1940