Gibbs--Preyer Trust 1 v. Commissioner
United States Board of Tax Appeals
Where the powers of the trustee, under the terms of a written trust, as properly supplemented by a contemporaneous oral agreement by the parties to the written trusts, are limited, during the by the parties to the written trusts, are limited, during the tax years, to those purely ministerial, such a trust is taxable, for those years, as a trust and not as an association. Lewis & Co. v. Commissioner,301 U.S. 385, followed.
1Opinion of the Court
*495OPINION.
Leech :
A sine, qua non of a trust, taxable as an association, is that such trust, in the words of the Supreme Court in Morrissey v. Commissioner, 296 U. S. 344, be “created and maintained as a medium for the carrying on of a business enterprise and sharing its gains.” It has been held by the Board, on the authority of that case and its companions,1 that, in determining whether the trust was created and maintained for such purpose, the powers granted in the trust instrument and not only those exercised during the tax years must be considered.
Here it may be said that the powers of…
2Cases cited6 opinions
- Morrissey v. CommissionerSupreme Court of the United States · 1935
- Helvering v. Coleman-Gilbert AssociatesSupreme Court of the United States · 1935
- Swanson v. CommissionerSupreme Court of the United States · 1935
- Helvering v. CombsSupreme Court of the United States · 1935
- Alexander v. RighterSupreme Court of Pennsylvania · 1913
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Gibbs--Preyer Trust 1 v. CommissionerUnited States Board of Tax Appeals · 1939