Elm Street Realty Trust v. Commissioner
United States Tax Court
E and H transferred rental property to a trust which was to serve as a vehicle for their estate planning. The trust's organizing instrument vested the trustee with broad authority over the res and provided for transfer of the beneficiaries' interests. The beneficiaries had limited powers respecting amendment of the trust's organizing instrument, its termination and appointment of a successor trustee.
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E and H transferred rental property to a trust which was to serve as a vehicle for their estate planning. The trust's organizing instrument vested the trustee with broad authority over the res and provided for transfer of the beneficiaries' interests. The beneficiaries had limited powers respecting amendment of the trust's organizing instrument, its termination and appointment of a successor trustee. E and H, the two original beneficiaries, transferred their beneficial interests to members of their families. Held, although the trust possessed a business objective, the beneficiaries were not…
1Opinion of the Court
Nims, Judge:
Respondent determined deficiencies in petitioner’s income tax for the taxable years ending February 28,1975, February 29, 1976, and February 28, 1977, in the respective amounts of $4,538.82, $4,320.88, and $3,912. The issue for decision is whether the Elm Street Realty Trust is an association within the meaning of section 7701(a)(3)1 and thus taxable as a corporation.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation and the exhibits attached thereto are incorporated herein by reference.
At the time the petition in this case was filed, petitioner’s principal…
2Cases cited19 opinions
- Morrissey v. CommissionerSupreme Court of the United States · 1935
- Helvering v. Coleman-Gilbert AssociatesSupreme Court of the United States · 1935
- Swanson v. CommissionerSupreme Court of the United States · 1935
- Helvering v. CombsSupreme Court of the United States · 1935
- Crocker v. MalleySupreme Court of the United States · 1919
14 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Bedell v. CommissionerUnited States Tax Court · 1986
- Allen v. CommissionerUnited States Tax Court · 1991
- Bedell v. CommissionerUnited States Tax Court · 1986
- Elm Street Realty Trust v. CommissionerUnited States Tax Court · 1981
- Howard v. United StatesUnited States Court of Claims · 1984
3 more not listed; retrieve them via the Exa API.