Murray v. Commissioner
United States Board of Tax Appeals
Distributions made from the income of a testamentary trust to the executors and trustees, who were also named as beneficiaries of the trust both as to the income and principal, as "full compensation in lieu of all commissions to them either as trustees or executors," held not compensation for services as executors and trustees, and to the extent that such distributions represented dividends on shares of stock of domestic corporations they are not subject to normal tax.
1Opinion of the Court
*29OPINION.
Smith:
The respondent’s position in all of these proceedings is that the amounts which the petitioners received from the trust in the taxable year 1934 represented compensation for services performed by the petitioners in their capacity as executors and trustees and that the amounts, upon their payment to the petitioners as compensation, lost their character as dividends, tax exempt interest, etc., and became earned income taxable at both the normal and surtax rates. The petitioners reported the amounts in their income tax returns as taxable at the surtax rates only in so far as they…
2Cases cited12 opinions
- Smith T. v. BellSupreme Court of the United States · 1832
- United States v. MerriamSupreme Court of the United States · 1923
- Carroll v. SaffordSupreme Court of the United States · 1845
- Hardenbergh v. RaySupreme Court of the United States · 1894
- Newlin v. Mercantile Trust Co.Court of Appeals of Maryland · 1932
7 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Bank of New York v. HelveringCourt of Appeals for the Second Circuit · 1943
- Estate of George F. Thompson v. CommissionerUnited States Tax Court · 1950
- Murray v. CommissionerUnited States Board of Tax Appeals · 1938