Bay Trust Co. v. Commissioner
United States Board of Tax Appeals
The trustee of a trust, created by an agreement made by the parties in compromise of a will controversy, may not deduct as distributed income, under Revenue Act 1928, sec. 162(b), the amount of a fixed annuity payable in any event, irrespective of the amount of trust income, notwithstanding that in the taxable year the payment is made from trust income and that in any year an inadequacy of trust income is to be made up of contributions by remaindermen.
1Opinion of the Court
OPINION.
Sternhagen :
The respondent determined a deficiency of $1,289.66 in the 1931 income tax of the trustee of the estate of Louis E. Oppen-heim (Docket No. 76356), and determined liability therefor of Levy and Spiesberger as transferees (Docket Nos. 79701 and 79702). He also determined a deficiency of $2,699.28 in the 1932 income tax of Jennie H. Oppenheim (since deceased), the widow of Louis E. Op-penheim and one of the beneficiaries of his trust estate (Docket No. 77886). These determinations are admitted by the respondent to be inconsistent in theory, and the question to be determined…
2Cases cited2 opinions
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Rose v. Southern Michigan National BankMichigan Supreme Court · 1931
3Cited by3 opinions
- Bay Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1936
- Ink v. CommissionerUnited States Board of Tax Appeals · 1937
- Union Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1936