Drexler v. Commissioner
United States Board of Tax Appeals
1. Income from property of a revocable trust held taxable to the grantor under section 219(g) of the Revenue Act of 1926, notwithstanding the fact that such income was distributable to charitable organizations. 2. Certain residence property owned by petitioner was used by relatives during the taxable years without payment of rent therefor. Held, that the respondent correctly disallowed deductions for repairs, insurance and depreciation in respect of such property.
1Opinion of the Court
*80OPINION.
Lansdon:
The petitioner contends that the trust here involved is a charitable organization and that it is exempt from tax under section 231 of the Eevenue Act of 1926. The respondent has determined that it is taxable under section 219. Clearly the petitioner does not come within the provisions of section 231. The law there refers to an organization which is engaged in carrying on a charitable function. A revocable trust is taxable under section 219, which provides in subsection (g) as follows:
Where the grantor of a trust has, at any time during the taxable year, either alone or in…
2Cases cited1 opinion
- Corliss v. BowersSupreme Court of the United States · 1930
3Cited by2 opinions
- Welch v. BradleyCourt of Appeals for the First Circuit · 1942
- Drexler v. CommissionerUnited States Board of Tax Appeals · 1932