Fleming v. Commissioner
United States Board of Tax Appeals
1. Distributions made to petitioners as beneficiaries under trusts, the income of which consisted of royalties from mining properties, held to be income and taxable to the life beneficiaries. 2. Beneficiaries under the trusts held not entitled to depletion on account of removal of ore from properties forming a part of the corpus of the trusts.
1Opinion of the Court
*905OPINION.
Arundell:
The petitioners contend that the royalties they received as beneficiaries under the mining trusts constituted a distribution of the corpus of the trusts and as such constituted property acquired by gift or bequest and are not taxable. That royalties from mining ore are income and not the return of capital has been settled ever since the decisions in Stratton's Independence v. Howbert, 231 U. S. 399; 34 Sup. Ct. 136; and Von Baumbach v. Sargent Land Co., 242 U. S. 503; 37 Sup. Ct. 201. The Supreme Court has also held that income from a trust created by a will is taxable to the…
2Cases cited11 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Irwin v. GavitSupreme Court of the United States · 1925
- Von Baumbach v. Sargent Land Co.Supreme Court of the United States · 1917
- Stratton's Independence, Ltd. v. HowbertSupreme Court of the United States · 1913
- Merchants' Loan & Trust Co. v. SmietankaSupreme Court of the United States · 1921
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3Cited by9 opinions
- Catlin v. CommissionerUnited States Board of Tax Appeals · 1932
- Chambers v. CommissionerUnited States Board of Tax Appeals · 1929
- Fleming v. CommissionerUnited States Board of Tax Appeals · 1927
- Fowler v. CommissionerUnited States Board of Tax Appeals · 1928
- Grandin v. CommissionerUnited States Board of Tax Appeals · 1929
4 more not listed; retrieve them via the Exa API.