Mott v. Commissioner
United States Board of Tax Appeals
1. Where the petitioner was both grantor and trustee under a deed of trust and had the right to deduct and retain annually 3 percent of the gross income of the trust as compensation for services as trustee, but did not make any charge for such services and did not collect anything therefor, and kept his accounts and made his returns on a cash receipts and disbursements basis, the allowable compensation is not taxable income to him. 2. Where the petitioner created three…
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1. Where the petitioner was both grantor and trustee under a deed of trust and had the right to deduct and retain annually 3 percent of the gross income of the trust as compensation for services as trustee, but did not make any charge for such services and did not collect anything therefor, and kept his accounts and made his returns on a cash receipts and disbursements basis, the allowable compensation is not taxable income to him. 2. Where the petitioner created three trusts for the benefit of his three children and provided in each that he as trustee was empowered to pay from the income…
1Opinion of the Court
*1043OPINION.
Adams:
Practically all of the questions in controversy here depend upon the validity of section 219 (h), Revenue Act of 1926, and section 167, Revenue Act of 1928, and their application to the facts in these cases.
These sections are substantially the same, section 167 being as follows :
Where any part of the income of a trust may, in the discretion of the grantor of the trust, either alone or in conjunction with any person not a beneficiary of the trust, be distributed to the grantor or be held or accumulated for future distribution to him, or where any part of the income of a trust is…
2Cases cited3 opinions
- Burnet v. WellsSupreme Court of the United States · 1933
- DuPont v. CommissionerSupreme Court of the United States · 1933
- Jacobs v. CommissionerUnited States Board of Tax Appeals · 1931
3Cited by4 opinions
- Breidert v. CommissionerUnited States Tax Court · 1968
- Breidert v. CommissionerUnited States Tax Court · 1968
- Breidert v. CommissionerUnited States Tax Court · 1968
- Mott v. CommissionerUnited States Board of Tax Appeals · 1934