Fabens v. Commissioner
United States Tax Court
Upon termination of a trust on June 16, 1969, petitioner paid an annual income commission, an annual principal commission, and paying and receiving commissions to the trustee.
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Upon termination of a trust on June 16, 1969, petitioner paid an annual income commission, an annual principal commission, and paying and receiving commissions to the trustee. The respondent disallowed as a deduction a portion of the annual commission that related to principal in the ratio of tax-exempt ordinary income to total ordinary income realized during the calendar year 1969. In addition, respondent disallowed a portion of the paying and receiving commissions in the ratio of tax-exempt income to total income, including capital gains, realized over the life of the trust. In making his…
1Opinion of the Court
SteeRett, Judge:
Respondent asserted a deficiency of $17,578 in petitioner’s income tax for the calendar year 1969. The only aspect of the deficiency that remains in dispute concerns the deductibility of fiduciary commissions, amounting to $53,894.67, which petitioner paid to Bankers Trust Co. on June 16, 1969, upon termination of a trust accoimt. What portion of that commission expense is allocable to tax-exempt income and therefore not deductible is the question before us.
FINDINGS OF FACT
Augustus J. Fabens (hereinafter petitioner) is an individual with legal residence in Boston, Mass. He…
2Cases cited5 opinions
- Willcutts v. BunnSupreme Court of the United States · 1931
- Manufacturers Hanover Trust Company, as Trustee Under Indenture Dated November 15, 1927, Made by Henry H. Rogers, Deceased v. The United StatesUnited States Court of Claims · 1963
- Clinton L. Whittemore, Jr., and Anne W. Whittemore v. United StatesCourt of Appeals for the Eighth Circuit · 1967
- Tucker v. CommissionerUnited States Tax Court · 1962
- Whittemore v. United StatesDistrict Court, E.D. Missouri · 1966
3Cited by4 opinions
- Estate of O'Connor v. CommissionerUnited States Tax Court · 1977
- Baker v. CommissionerUnited States Tax Court · 1990
- Estate of O'Connor v. CommissionerUnited States Tax Court · 1977
- Fabens v. CommissionerUnited States Tax Court · 1974