Chambers v. Commissioner
United States Board of Tax Appeals
1. Terms of a trust construed to provide that the trustees should retain out of income amounts sufficient to provide for depreciation and depletion of capital assets and to cover losses. 2. The beneficiaries of a trust are taxable only upon their distributable share of the income of the trust.
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1. Terms of a trust construed to provide that the trustees should retain out of income amounts sufficient to provide for depreciation and depletion of capital assets and to cover losses. 2. The beneficiaries of a trust are taxable only upon their distributable share of the income of the trust. When the trustee properly withholds from income amounts necessary to provide for exhaustion and losses of capital assetsThe distributable income of the beneficiary does not include any part of such amounts withheld.
1Opinion of the Court
OPINION.
Phillips :
The respondent determined deficiencies in income tax as follows:
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The petitioners thereupon duly instituted these proceedings which, at the time of hearing, were consolidated and submitted upon the pleadings and stipulations. It is sufficient to set out here the principal facts without reciting the details contained in the record.
Fred N. Chambers died testate in May, 1918, and by his last will and testament, admitted to probate in Pennsylvania, provided for the distribution of his residuary estate as follows:
Thikd. Anti all the rest, residue and remainder of my…
2Cases cited2 opinions
- Follmer's AppealSupreme Court of Pennsylvania · 1860
- Hagerty v. AlbrightSupreme Court of Pennsylvania · 1866
3Cited by3 opinions
- Chambers v. CommissionerUnited States Board of Tax Appeals · 1934
- Chambers v. CommissionerUnited States Board of Tax Appeals · 1929
- McCrory v. CommissionerUnited States Board of Tax Appeals · 1932