Pozzo Di Borgo v. Commissioner
United States Tax Court
Petitioner in 1949 paid commissions to a trustee upon the revocation of a trust previously created by her. The total amount of the commissions was determined in accordance with provisions of the New York Civil Practice Act as "commissions from principal" for receiving and paying out the entire value of the principal. 36.5136 per cent of the total value of the principal consisted of securities the income or interest from which was exempt from the income tax.
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Petitioner in 1949 paid commissions to a trustee upon the revocation of a trust previously created by her. The total amount of the commissions was determined in accordance with provisions of the New York Civil Practice Act as "commissions from principal" for receiving and paying out the entire value of the principal. 36.5136 per cent of the total value of the principal consisted of securities the income or interest from which was exempt from the income tax. Petitioner contends that the commissions paid out of principal were expenses paid solely for the management, conservation, or maintenance…
1Opinion of the Court
OPINION.
FisheR, Judge:
All of the facts are stipulated and are incorporated herein by this reference.
In 1946, the petitioner executed a trust agreement which created a revocable trust to which she transferred certain securities and cash. The trust agreement provided that all questions pertaining to the validity, construction, and administration of the trust were to be determined in accordance with the laws of the State of New Jersey. The agreement also provided as follows:
SEVENTH: The compensation of the Trustee and any co-Trustee or successor Trustee shall be as agreed upon by the Donor and…
2Cases cited4 opinions
- Smart v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1945
- Civiletti v. CommissionerUnited States Tax Court · 1944
- Civiletti v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1945
- Knox Trust v. CommissionerUnited States Tax Court · 1944
3Cited by4 opinions
- Clinton L. Whittemore, Jr., and Anne W. Whittemore v. United StatesCourt of Appeals for the Eighth Circuit · 1967
- Dileonardo v. CommissionerUnited States Tax Court · 2000
- Whittemore v. United StatesDistrict Court, E.D. Missouri · 1966
- Pozzo Di Borgo v. CommissionerUnited States Tax Court · 1954