Wesenberg v. Commissioner
United States Tax Court
In 1972 petitioners, H and W, created a trust to which H purportedly conveyed his lifetime services and all remuneration earned therefrom.
Read the full summary
In 1972 petitioners, H and W, created a trust to which H purportedly conveyed his lifetime services and all remuneration earned therefrom. Held: 1. The purported conveyance was merely an assignment of income ineffective to shift the incidence of taxation from petitioners to the trust on amounts paid as compensation for H's services. 2. H, as trustee, held powers sufficient to cause the entire trust to be governed by secs. 671- 677, I.R.C., 1954. 3. The amount of allowable deductions incurred by H in writing a book determined. 4. Petitioners are liable for an addition to tax under sec. 6653(a).
1Opinion of the Court
Fay, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax for 1972 of $4,222, plus an addition to tax under section 6653(a)1 of $211.
The issues for decision are: (1) Whether the purported conveyance by petitioner Richard L. Wesenberg of his lifetime services to a family trust was effective to shift the incidence of taxation on amounts representing compensation to him but paid to the trust; (2) whether certain income and expense items reported by the trust should have been included instead by petitioners on their Federal income tax return for 1972 under sections 671…
2Cases cited8 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- United States v. BasyeSupreme Court of the United States · 1973
- American Sav. Bank v. CommissionerUnited States Tax Court · 1971
- Roubik v. CommissionerUnited States Tax Court · 1969
3 more not listed; retrieve them via the Exa API.
3Cited by125 opinions
- Luman v. CommissionerUnited States Tax Court · 1982
- Wallace J. Vnuk and Frances R. Vnuk v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1980
- Markosian v. CommissionerUnited States Tax Court · 1980
- Vercio v. CommissionerUnited States Tax Court · 1980
- United States v. Gordon S. ButtorffCourt of Appeals for the Fifth Circuit · 1985
120 more not listed; retrieve them via the Exa API.