Whitcomb v. Commissioner
United States Board of Tax Appeals
The petitioners are beneficiaries of a certain trust and entitled to the income thereof. The trustee, in computing the net income of the trust for 1921 to 1926, inclusive, deducted certain amounts for exhaustion, wear and tear of the trust property, but distributed among the petitioners the amounts deducted for exhaustion, wear and tear, together with the net income so computed.
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The petitioners are beneficiaries of a certain trust and entitled to the income thereof. The trustee, in computing the net income of the trust for 1921 to 1926, inclusive, deducted certain amounts for exhaustion, wear and tear of the trust property, but distributed among the petitioners the amounts deducted for exhaustion, wear and tear, together with the net income so computed. Subsequently a court of competent jurisdiction, in a proper suit brought by the remaindermen, decided that the trustee should have retained the amounts for exhaustion, wear and tear of the trust property and ordered…
1Dissent
Murdock,
dissenting: The decedent died in 1889 and the trust in question, so far as we know, began to function shortly thereafter. The account which was objected to covered only the period from February 28,1903, to February 23,1928. Prior accounts must have been approved in which there was no deduction for depreciation. Wear, tear and exhaustion of property, sometimes called depreciation, does not depend upon revenue acts. Yet, we see that the objection of those opposing the account related to depreciation which had been sustained from 1913 to 1927 only. Nineteen hundred and thirteen was the…
2Cases cited9 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- Weiss v. WeinerSupreme Court of the United States · 1929
- In Re the Final Judicial Settlement of the Annual Accounts of HoytNew York Court of Appeals · 1899
- Jackson v. SmietankaCourt of Appeals for the Seventh Circuit · 1921
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