Davis v. Commissioner
United States Tax Court
1. During its taxable year 1942, H. S. D. Co. established a profit sharing plan for its executive employees and its hourly-paid employees and as part of the plan established a separate trust for each of those groups of its employees. During 1948 Harold S. Davis, a participant in the trust for the executive employees, died and thereafter during that year the trustee of that trust distributed in one sum to petitioner, Mary Davis, his interest in the trust.
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1. During its taxable year 1942, H. S. D. Co. established a profit sharing plan for its executive employees and its hourly-paid employees and as part of the plan established a separate trust for each of those groups of its employees. During 1948 Harold S. Davis, a participant in the trust for the executive employees, died and thereafter during that year the trustee of that trust distributed in one sum to petitioner, Mary Davis, his interest in the trust. She reported said sum as taxable as gain from the sale or exchange of a capital asset held for more than 6 months. Respondent determined…
1Opinion of the Court
OPINION.
Withev, Judge:
The single issue for determination is whether the amount received by petitioner on November 22, 1948, as the interest of the decedent in the executive trust is taxable as gain from the sale or exchange of a capital asset held for more than 6 months, as reported by petitioner, or as ordinary income, as determined by respondent. Under the provisions of section 165 (b) of the Internal Revenue Code, where the total distributions payable by a trust that is exempt from taxation under section 165 (a) with respect to any employee are paid to the distributee within one taxable…
2Cases cited4 opinions
- Commissioner v. SunnenSupreme Court of the United States · 1948
- Lincoln Electric Co. Employees' Profit-Sharing Trust v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1951
- Lincoln Electric Co. Employees' Profit-Sharing Trust v. CommissionerUnited States Tax Court · 1950
- E. R. Wagner Mfg. Co. v. CommissionerUnited States Tax Court · 1952
3Cited by1 opinion
- Davis v. CommissionerUnited States Tax Court · 1954