Blakeslee v. Commissioner
United States Tax Court
In 1934 and 1935 petitioner created trusts in which a bank was named trustee and petitioner's only daughter was the beneficiary. The corpus of the 1934 trust consisted of stock of the Kalamazoo Stove Co., of which petitioner was president but a minority stockholder, and other securities. The 1935 trust corpus was originally composed of other shares of the Stove Co. stock.
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In 1934 and 1935 petitioner created trusts in which a bank was named trustee and petitioner's only daughter was the beneficiary. The corpus of the 1934 trust consisted of stock of the Kalamazoo Stove Co., of which petitioner was president but a minority stockholder, and other securities. The 1935 trust corpus was originally composed of other shares of the Stove Co. stock. The grantor reserved certain rights: (1) To vote the Stove Co. stock; (2) to veto the sale of the Stove Co. stock; (3) to consent to the investment of trust income; (4) to substitute trustees; and (5) to defer for a limited…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The question posed in this case is whether the petitioner is taxable on the income of certain trusts under the provisions of section 167 or of section 22 (a) of the Internal Revenue Code.
Much the same problem was before us on comparable facts in Frederick Ayer, 45 B. T. A. 146, where the grantor retained broad powers of management and the trust income could be used for the “support, education, comfort and happiness” of the grantor’s children. There, as in the instant case, none of the income was so used in the taxable years. We held against the respondent and ruled…
2Cases cited4 opinions
- Helvering v. StuartSupreme Court of the United States · 1942
- Loew v. CommissionerUnited States Tax Court · 1946
- Banfield v. CommissionerUnited States Tax Court · 1944
- Wheelock v. CommissionerUnited States Tax Court · 1946
3Cited by1 opinion
- Blakeslee v. CommissionerUnited States Tax Court · 1946