Bonfils v. Commissioner
United States Board of Tax Appeals
Under the terms of decedent's will, profits resulting from the sale of assets became part of the corpus of a trust. If net income should be insufficient to pay certain annuities created by the will, the corpus might be invaded. A charitable corporation was the residuary legatee. Capital gains were realized from the sale of securities during the taxable years.
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Under the terms of decedent's will, profits resulting from the sale of assets became part of the corpus of a trust. If net income should be insufficient to pay certain annuities created by the will, the corpus might be invaded. A charitable corporation was the residuary legatee. Capital gains were realized from the sale of securities during the taxable years. Held, that the probability of invasion of corpus to pay the annuities was, under the circumstances, so remote that such gains are deductible from the petitioners' gross income under section 162(a) of the Revenue Act of 1934.
1Opinion of the Court
HELEN G. BONFILS, THOMAS L. BONFILS, CHARLES A. BONFILS, F. W. BONFILS, J. B. GRANT, AND THE DENVER NATIONAL BANK, EXECUTORS OF THE ESTATE OF F. G. BONFILS, DECEASED, PETITIONERS, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Bonfils v. Commissioner
Docket No. 91501.
United States Board of Tax Appeals
40 B.T.A. 1079; 1939 BTA LEXIS 752;
December 8, 1939, Promulgated
Under the terms of decedent's will, profits resulting from the sale of assets became part of the corpus of a trust. If net income should be insufficient to pay certain annuities created by the will, the corpus might be invaded. A…
2Cases cited9 opinions
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Humes v. United StatesSupreme Court of the United States · 1928
- United States v. Provident Trust Co.Supreme Court of the United States · 1934
- Lederer v. StocktonSupreme Court of the United States · 1922
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1937
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