Hill v. Commissioner
United States Tax Court
The will of a decedent provided that the executors, in their absolute discretion, could require or waive refunding bonds before paying income to the residuary legatees. Held, such provision prevents the right of the legatees to current income from being vested and absolute, and such income, to the extent not actually distributed or irrevocably credited to them is not includible in their taxable incomes. Sec. 162 (b), I. R. C. 1939.
1Opinion of the Court
OPINION.
Raum, Judge:
The statutory provisions dealing with the income of estates and trusts evidence an intention that all such income shall be taxed.2 Cf. Central Hanover Bank & Trust Co., Executor, 34 B. T. A. 741. Sections 162 (b) and 162 (c) of the Internal Revenue Code of 1939, together with various other sections, deal with the question of when such income is taxable to the fiduciary and when it is taxable to the legatee, heir, or beneficiary.
Section 162 (b) provides that when the income is “to be distributed currently” all of such income shall be deductible by the fiduciary and taxed to…
2Cases cited14 opinions
- Freuler v. HelveringSupreme Court of the United States · 1934
- Saulsbury v. United StatesCourt of Appeals for the Fifth Circuit · 1952
- Commissioner of Internal Revenue v. StearnsCourt of Appeals for the Second Circuit · 1933
- Cohen v. CommissionerUnited States Tax Court · 1947
- Bruner v. CommissionerUnited States Tax Court · 1944
9 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Estate of O'Connor v. CommissionerUnited States Tax Court · 1977
- Walker v. CommissionerUnited States Tax Court · 1958
- Herbert v. CommissionerUnited States Tax Court · 1956
- Estate of Bruchmann, etc. v. CommissionerUnited States Tax Court · 1969
- Estate of Bruchmann, etc. v. CommissionerUnited States Tax Court · 1969
5 more not listed; retrieve them via the Exa API.