Andrus Trust v. Commissioner
United States Tax Court
Where trustees paid or permanently set aside 45 per cent of the income of the trust for a charitable corporation in accordance with the instrument creating the trust, held, the entire amount so paid or set aside is deductible under section 162 (a), Internal Revenue Code, in computing the net taxable income of the trust, even though a large part of the trust income consisted of long term capital gains.
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Where trustees paid or permanently set aside 45 per cent of the income of the trust for a charitable corporation in accordance with the instrument creating the trust, held, the entire amount so paid or set aside is deductible under section 162 (a), Internal Revenue Code, in computing the net taxable income of the trust, even though a large part of the trust income consisted of long term capital gains. Old Colony Trust Co., 301 U.S. 379; Charles F. Grey, 41 B. T. A. 234, distinguished.
1Opinion of the Court
OPINION.
Harlan, Judge:
It is to be noted in this case that the respondent raises no question concerning the includibility of capital gains in the distributable income of this trust estate. Furthermore, respondent has not questioned the power of the trustee herein to “set aside” for the charitable beneficiary that portion of the “net income” which the trust instrument directs him to “pay” to the charitable beneficiary. In computing the deficiency here in question the respondent disallowed the claimed deduction on account of contributions to the Surdna Foundation to the extent of $23,615.94. The…
2Cases cited3 opinions
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1937
- Tyler Trust CommissionerUnited States Tax Court · 1945
3Cited by3 opinions
- United States v. BenedictSupreme Court of the United States · 1950
- Benedict v. United StatesUnited States Court of Claims · 1949
- Andrus Trust v. CommissionerUnited States Tax Court · 1946