O'Brien v. Commissioner
United States Board of Tax Appeals
TRUST INCOME - PROFITS FROM SALE OF STOCK RIGHTS TAXABLE TO FIDUCIARY AND NOT TO BENEFICIARIES. - Decedent in his will created a trust for the benefit of certain beneficiaries who were to receive the "income, interest and dividends" from the trust corpus semiannually. The trust corpus was to be held, invested, and reinvested until January 1, 1930, when it was to be turned over to the remaindermen, who were the same persons as those entitled to receive the income.
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TRUST INCOME - PROFITS FROM SALE OF STOCK RIGHTS TAXABLE TO FIDUCIARY AND NOT TO BENEFICIARIES. - Decedent in his will created a trust for the benefit of certain beneficiaries who were to receive the "income, interest and dividends" from the trust corpus semiannually. The trust corpus was to be held, invested, and reinvested until January 1, 1930, when it was to be turned over to the remaindermen, who were the same persons as those entitled to receive the income. Among the assets conveyed to the trust were certain shares of stock in a national bank on which certain stock rights were…
1Opinion of the Court
*150OPINION.
Black:
Respondent bas determined a deficiency in income tax against petitioner for the year 1929 of $6,682.37. In the statement attached to the deficiency notice respondent states the reasons upon which he computed the deficiency as follows:
The issue involved at the conference is whether corpus gains are taxable to the trust estate or to the beneficiaries who are also the remaindermen.
Careful consideration has been given to all information submitted with the result that this office cannot allow your contentions.
You are advised that article 861, Regulations 74, provides in part as…
2Cases cited2 opinions
- Waterhouse's EstateSupreme Court of Pennsylvania · 1932
- Chambers v. CommissionerUnited States Board of Tax Appeals · 1934
3Cited by2 opinions
- Davis v. CommissionerUnited States Board of Tax Appeals · 1937
- O'Brien v. CommissionerUnited States Board of Tax Appeals · 1934