Cadwalader v. Commissioner

*1081OPINION.

Matthews:

Petitioner is the sole distributee for life under the will of her deceased husband, the testator, of the “ net income ” of the estate. The testator appointed his two sons to hold the property in trust for their mother “ and to pay to her the net interest and bicorne of my entire estate so long as she shall live.”

Section 219 (b) (2) and (3) of the Revenue Act of 1926, applicable here and set out in the margin,1 provides that income, whether distributed or only distributable to a beneficiary of the trust, may be taken as a deduction by the trustees in determining the net income…