Scheft v. Commissioner
United States Tax Court
Petitioner created six trusts and directed the trustees to distribute the net income of each trust to a designated beneficiary and, upon termination of each trust, to pay over the principal, including the capital gains, to petitioner or, if he is not living, to his estate.
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Petitioner created six trusts and directed the trustees to distribute the net income of each trust to a designated beneficiary and, upon termination of each trust, to pay over the principal, including the capital gains, to petitioner or, if he is not living, to his estate. Petitioner reports his income using a calendar year while each of the trusts uses a fiscal year ending Mar. 31. During the calendar year 1968 and during the trusts' fiscal year ending Mar. 31, 1969, the trusts sold property and realized capital gains which petitioner admits are taxable to him. Held, under the provisions of…
1Opinion of the Court
opinion
Featherston, Judge:
Respondent determined a deficiency in petitioners’ income tax for 1968 in the amount of $103,184. The only issue is whether sections 451(a) and 671 1 require the capital gains realized on the sales of property which had been placed in trust by petitioner William Scheft to be included in his income for the taxable year (1968) in which the property was sold or in the following year (1969) during which the fiscal year of the trusts ended.
William Scheft (hereinafter petitioner) and Gertrude Scheft, husband and wife, filed a joint Federal income tax return for 1968 with…
2Cases cited16 opinions
- Helvering v. CliffordSupreme Court of the United States · 1940
- Singer v. United StatesSupreme Court of the United States · 1945
- Mallinckrodt v. CommissionerUnited States Tax Court · 1943
- Mallinckrodt v. NunanCourt of Appeals for the Eighth Circuit · 1945
- Athanasius Y. Samuel v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1962
11 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Rusoff v. CommissionerUnited States Tax Court · 1975
- Airline Pilots Ass'n International v. United Airlines, Inc.California Court of Appeal · 2014
- Estate of Gregg v. CommissionerUnited States Tax Court · 1977
- Keefover v. CommissionerUnited States Tax Court · 1989
- Stone v. CommissionerUnited States Tax Court · 1987
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