Filley v. Commissioner
United States Board of Tax Appeals
1. INCOME - TRUSTS - DISTRIBUTED CURRENTLY. - Income paid to a beneficiary under a provision to "pay over the net income thereof in semiannual or other convenient payments * * * or in the uncontrolled discretion of the Trustees to apply the same to her use and benefit", and under the provision of another trust to "pay over the net income to the child for whom the trust is held during the term of his or her natural life", is income to be distributed currently within the…
Read the full summary
1. INCOME - TRUSTS - DISTRIBUTED CURRENTLY. - Income paid to a beneficiary under a provision to "pay over the net income thereof in semiannual or other convenient payments * * * or in the uncontrolled discretion of the Trustees to apply the same to her use and benefit", and under the provision of another trust to "pay over the net income to the child for whom the trust is held during the term of his or her natural life", is income to be distributed currently within the meaning of section 162(b), Revenue Act of 1936, and is taxable to the beneficiary even though it was not paid to her until…
1Opinion of the Court
*829OPINION.
Murdock :
It is provided in section 162 (b) of the Revenue Act of 1936 that a trust shall be allowed a deduction of the amount of the income of the “trust for its taxable year which is to be distributed currently by the fiduciary to the beneficiaries”, and in section 162 (c) that “in the case of income which, in the discretion of the fiduciary, may be either distributed to the beneficiary or accumulated”, the amount which is properly paid or credited during such year to the beneficiary *830shall be allowed as a deduction. The amount allowed as a deduction under either of the above…
2Cases cited4 opinions
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Freuler v. HelveringSupreme Court of the United States · 1934
- Helvering v. City Bank Farmers Trust Co.Supreme Court of the United States · 1935
- United States v. PyneSupreme Court of the United States · 1941
3Cited by4 opinions
- Plimpton v. CommissionerCourt of Appeals for the First Circuit · 1943
- Saulsbury v. United StatesDistrict Court, S.D. Florida · 1951
- Filley v. CommissionerUnited States Board of Tax Appeals · 1941
- Meier v. CommissionerUnited States Tax Court · 1945