State Tax Commissioner v. Stephenson

OPINION

CHRISTIE, Judge.

This appeal from the decision of the State Tax Board involves the question of whether or not a capital gain, realized by a trustee of a revocable trust through investment of trust principal in a commingled trust fund, is to be treated differently for Delaware income tax purposes than a capi tal gain realized by such a trustee from a distribution of corporate stock pursuant to an antitrust decree. It has been established that the stock distribution, if added to principal and not passed on to the beneficiary or credited to him subject to withdrawal as income, is taxable…