Childs v. Commissioner
United States Board of Tax Appeals
1. Where the wife of a grantor of a trust was given the current income for life and a limited testamentary power of appointment over corpus and income, she had an interest in the corpus substantially adverse to that of the grantor, and capital gains of the trust are not taxable to the grantor under section 166 of the Revenue Act of 1936. 2. Where, under such trust, only income from capital gains could go to the grantor, and this income only by the voluntary testamentary act…
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1. Where the wife of a grantor of a trust was given the current income for life and a limited testamentary power of appointment over corpus and income, she had an interest in the corpus substantially adverse to that of the grantor, and capital gains of the trust are not taxable to the grantor under section 166 of the Revenue Act of 1936. 2. Where, under such trust, only income from capital gains could go to the grantor, and this income only by the voluntary testamentary act of the wife and if she predeceased the grantor, such gains are not taxable to the grantor under section 167 of the same…
1Opinion of the Court
OPINION.
Leech :
Respondent has determined a deficiency of $1,837.64 in income tax of the decedent, William Childs, for the calendar year 1936. The decedent died a resident of Bernardsville, New Jersey. He and his wife filed a joint income tax return for that year with the collector of internal revenue for the fifth district of New Jersey, at Newark, New Jersey. This deficiency arises as a result of respondent’s increasing the income reported on that return by the amount of a gain realized from the sale of certain securities comprising a portion of the corpus of a trust created by the decedent.…
2Cases cited2 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Daybill v. LucasNew Jersey Court of Chancery · 1936
3Cited by1 opinion
- Childs v. CommissionerUnited States Board of Tax Appeals · 1941