Fruehauf v. Commissioner
United States Tax Court
By a trust indenture dated December 30, 1935, petitioner transferred to himself, as trustee, certain shares of the capital stock of the Fruehauf Trailer Co., of which he was the president. The trust income was to be paid to his wife for life, with the remainder to his children, upon their arriving at certain ages, and, in the event of their prior death, to their issue.
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By a trust indenture dated December 30, 1935, petitioner transferred to himself, as trustee, certain shares of the capital stock of the Fruehauf Trailer Co., of which he was the president. The trust income was to be paid to his wife for life, with the remainder to his children, upon their arriving at certain ages, and, in the event of their prior death, to their issue. Held, the trust income for the year 1941 is not includible in petitioner's gross income under section 22 (a), 166, or 167 of the Internal Revenue Code.
1Opinion of the Court
OPINION.
Leech, Judge:
The only contested issue concerns the taxability of petitioner upon the income of three trusts created by him on December 30,1935, for the benefit of his wife and three children. The respondent contends that the income is taxable to petitioner under section 22 (a) of the Internal Revenue Code, under the doctrine of Helvering v. Clifford, 309 U. S. 331. The respondent argues that paragraph 9 (a) of the trust agreement, which grants to the trustee a broad sweep of powers, including the power “to invest * * * in * * * non-income producing securities,” and “without answering…
2Cases cited5 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Rentschler v. CommissionerUnited States Tax Court · 1943
- Pray v. BeltSupreme Court of the United States · 1828
- Biddle v. CommissionerUnited States Tax Court · 1948
- Black v. CommissionerUnited States Tax Court · 1945
3Cited by1 opinion
- Fruehauf v. CommissionerUnited States Tax Court · 1949