Armstrong v. Commissioner
United States Board of Tax Appeals
Petitioner was the life beneficiary of a testamentary trust created by her husband which, in the taxable year in question, received $88,200,35 interest which had been accrued but unpaid on certain notes held by the trust.
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Petitioner was the life beneficiary of a testamentary trust created by her husband which, in the taxable year in question, received $88,200,35 interest which had been accrued but unpaid on certain notes held by the trust. The executors of the estate theretofore had received the notes as a principal asset of the estate, and had transferred one of them of the face amount of $25,000, plus interest, for the sum of $26,522.30, which sum was entered in their books and reported by them as income when received. In lieu of the note thus transferred the executors placed in their principal account an…
1Opinion of the Court
*664OPINION.
Van Fossan:
The sole question presented by the above facts is whether the payment of $25,000 of the sum of $88,200.35 received by the trustees on July 30,1932, from the Fajardo Sugar Co., represented a return of capital and, therefore, not income to the trust to be distributed currently to petitioner.
Respondent contends that the transaction of July 31, 1931, transferring the $25,000 Fajardo note and accrued interest thereon to the new firm for $26,522.30 in cash was in fact a purchase and sale of this note. On this premise he urges that the proceedings were highly irregular and totally…
2Cases cited6 opinions
- Blair v. CommissionerSupreme Court of the United States · 1937
- Poe v. SeabornSupreme Court of the United States · 1930
- Freuler v. HelveringSupreme Court of the United States · 1934
- Uterhart v. United StatesSupreme Court of the United States · 1916
- Spindle v. ShreveSupreme Court of the United States · 1884
1 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Craig v. United StatesDistrict Court, W.D. Pennsylvania · 1946
- Armstrong v. CommissionerUnited States Board of Tax Appeals · 1938
- Balzereit v. CommissionerUnited States Board of Tax Appeals · 1942
- Botts v. CommissionerUnited States Board of Tax Appeals · 1940
- Eisenmenger v. CommissionerUnited States Tax Court · 1943
2 more not listed; retrieve them via the Exa API.