Hrobon v. Commissioner
United States Tax Court
Under the will of her first husband May Hrobon was entitled to receive all the income of the Clay M. Thomas trust for life with the remainder going to the heirs of Clay M. Thomas upon May's death. The principal asset of the trust consisted of a laundry and linen supply business which had been operated as a proprietorship and which the trustee continued to operate quite successfully as such from the date of Thomas' death in 1938 to date.
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Under the will of her first husband May Hrobon was entitled to receive all the income of the Clay M. Thomas trust for life with the remainder going to the heirs of Clay M. Thomas upon May's death. The principal asset of the trust consisted of a laundry and linen supply business which had been operated as a proprietorship and which the trustee continued to operate quite successfully as such from the date of Thomas' death in 1938 to date. In November 1955, May entered into an agreement with Emil Hrobon, whom she had married in 1939 and divorced in 1952, whereby she transferred all her right,…
1Opinion of the Court
OPINION
The question upon the answer to which all issues here involved hinge, is what the parties intended and what was actually accomplished by the transaction between May and Emil evidenced by the agreement of November 9, 1955. In tax matters we must look to substance rather than form alone, Helvering v. Clifford, 309 U.S. 331 (1940), and the essence of the transaction is to be determined not by the subtleties of draftsmanship but by its total effect. Commissioner v. P. G. Lake, Inc., 356 U.S. 260 (1958). The transaction here involved seems to us to be one to which that rule is peculiarly…
2Cases cited13 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Blair v. CommissionerSupreme Court of the United States · 1937
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Commissioner v. WemyssSupreme Court of the United States · 1945
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
8 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Chambers v. CommissionerUnited States Tax Court · 1986
- Clopton v. Comm'rUnited States Tax Court · 2004
- Estate of Regester v. CommissionerUnited States Tax Court · 1984
- Carson v. CommissionerUnited States Tax Court · 1978
- Carson v. CommissionerUnited States Tax Court · 1978
4 more not listed; retrieve them via the Exa API.