Kraft v. Commissioner
United States Board of Tax Appeals
A trust indenture executed in 1930 provided that settlor could, by an instrument in writing executed and served upon the trustees at least five days prior to expiration of any calendar year, revoke the trust after the end of such year. No further instrument of revocation was provided, nor notice required. Settlor was not a trustee.
Read the full summary
A trust indenture executed in 1930 provided that settlor could, by an instrument in writing executed and served upon the trustees at least five days prior to expiration of any calendar year, revoke the trust after the end of such year. No further instrument of revocation was provided, nor notice required. Settlor was not a trustee. Held, that section 166, Revenue Act of 1934, is applicable, without violating constitutional rights of petitioner, and respondent did not err in including the income of the trust in computing net income of the settlor for the calendar year 1934.
1Opinion of the Court
OPINION.
Disnet:
This proceeding involves income tax for the calendar year 1934. Respondent determined deficiency of $9,731.84, all of which is in issue. The facts were stipulated, and we find the facts as so stipulated, and will set same forth herein only in so far as *241necessary for consideration of tbe issue presented. The issue is as to taxability to settlor in 1934 of income of a trust set up in a prior year, made revocable in any year by an instrument served prior to the year, which notice had not been given prior to the year 1934. Respondent applied section 166 of the Revenue Act of 1934,…
2Cases cited3 opinions
- Corliss v. BowersSupreme Court of the United States · 1930
- Burnet v. WellsSupreme Court of the United States · 1933
- Reinecke v. SmithSupreme Court of the United States · 1933
3Cited by1 opinion
- Kraft v. CommissionerUnited States Board of Tax Appeals · 1939