Rusoff v. Commissioner
United States Tax Court
Petitioners and others owned a cigarette filter invention which they transferred to a trust created in June 1967, retaining the right to the trust's income as well as any gains from the sale of its corpus.
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Petitioners and others owned a cigarette filter invention which they transferred to a trust created in June 1967, retaining the right to the trust's income as well as any gains from the sale of its corpus. In July 1967, the trust transferred the invention to Columbia University under an agreement obligating the university, among other things, to prosecute domestic and foreign patents, protect them from infringement, and negotiate and enter into licensing agreements with the cigarette industry. Petitioners reserved for themselves a substantial percentage of any royalties earned under the…
1Opinion of the Court
OPINION
1. Ownership Issue
Respondent seeks to deny the claimed charitable contributions on the ground that, as a result of the June 9, 1967, transaction, the trust became the owner of the filter, and the trust rather than petitioners made the July 7, 1967, transfer to Columbia. He contends that, since petitioners had already transferred all their interest in the filter to the trust, they could not have made a charitable contribution to Columbia.
Respondent’s argument is without merit. Under the terms of the trust created by petitioners on June 9, 1967, the trustees are directed to “collect the…
2Cases cited10 opinions
- Commissioner v. DubersteinSupreme Court of the United States · 1960
- Harold Dejong and Marjorie J. Dejong v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- Robert C. Stubbs and Mary Ann Stubbs, Husband and Wife v. United StatesCourt of Appeals for the Ninth Circuit · 1970
- Sutton v. CommissionerUnited States Tax Court · 1971
- Athanasius Y. Samuel v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1962
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- Osborne v. CommissionerUnited States Tax Court · 1986
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