Lonergan v. Commissioner
United States Tax Court
1. A decree of the Missouri Circuit Court, entered in a proceeding to construe decedent's will, directed the trustees of the testamentary trust created by the will to first satisfy a judgment against decedent's estate by the payment of $ 300 monthly thereon out of the income of the trust estate.
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1. A decree of the Missouri Circuit Court, entered in a proceeding to construe decedent's will, directed the trustees of the testamentary trust created by the will to first satisfy a judgment against decedent's estate by the payment of $ 300 monthly thereon out of the income of the trust estate. Held, the payments on this judgment did not constitute distributions to a beneficiary, as such, but were payments on account of a debt of the decedent and consequently were not deductible in computing the net taxable income of the trust estate under section 162 (b), I. R. C. 2. Section 23 (c) (1) (A),…
1Opinion of the Court
OPINION.
Leech, Judge-.
The primary question is whether the $300 monthly payments made by the trustees to Clyde Elaine Robinson, in the taxable year, are deductible in determining the Federal income tax liability of the trust estate. The answer, we think, depends on the character of such payments. If the payments were distributions to a beneficiary pursuant to the trust instrument, they are deductible under section 162 (b) of the Internal Revenue Code.1 On the other hand, if the payments were in satisfaction of an indebtedness of the decedent, they are not deductible under this section. It is…
2Cases cited1 opinion
- Freuler v. HelveringSupreme Court of the United States · 1934
3Cited by4 opinions
- Mott v. United StatesUnited States Court of Claims · 1972
- Du Pont Testamentary Trust v. CommissionerUnited States Tax Court · 1976
- Du Pont Testamentary Trust v. CommissionerUnited States Tax Court · 1976
- Lonergan v. CommissionerUnited States Tax Court · 1946