O'Brien v. Commissioner
United States Tax Court
Petitioners created a trust, naming themselves trustees and life income beneficiaries, with gifts in remainder to certain charitable organizations. The trust provided the trustees with broad management powers, including the right to sell and reinvest corpus and designate new charitable beneficiaries. The trust also provided that petitioners would be able to recapture their gifts to the trust if the Commissioner disallowed their gifts as charitable contributions.
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Petitioners created a trust, naming themselves trustees and life income beneficiaries, with gifts in remainder to certain charitable organizations. The trust provided the trustees with broad management powers, including the right to sell and reinvest corpus and designate new charitable beneficiaries. The trust also provided that petitioners would be able to recapture their gifts to the trust if the Commissioner disallowed their gifts as charitable contributions. Respondent ruled that the trust was not tax-exempt and that gifts thereto would not be deductible. Subsequently, petitioners…
1Opinion of the Court
Dawson, Judge:
Respondent determined a deficiency in income tax against petitioners for the taxable year 1964 in the amount of $6,079.90.
The sole issue for decision is whether the petitioners are entitled to deduct as a charitable contribution under section 170, I.R.C. 1954, the value of a remainder interest in property given by them in 1964 to the William D. and Gertrude T. O’Brien Charitable Trust. An automatic adjustment relating to a claimed medical expense deduction can be given effect in the Rule 50 computation.
FINDINGS OF FACT
Some of the facts have been stipulated by the parties. The…
2Cases cited14 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Boyd v. Frost National Bank of S.A.Texas Supreme Court · 1946
- Danz v. CommissionerUnited States Tax Court · 1952
- The John Danz Charitable Trust v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1956
- Waller v. CommissionerUnited States Tax Court · 1963
9 more not listed; retrieve them via the Exa API.
3Cited by20 opinions
- Edgar v. CommissionerUnited States Tax Court · 1971
- Chapman v. Commissioner of RevenueSupreme Court of Minnesota · 2002
- Greer v. United StatesCourt of Appeals for the Fourth Circuit · 1971
- Graev v. CommissionerUnited States Tax Court · 2013
- Buehner v. CommissionerUnited States Tax Court · 1976
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