Bergan v. Commissioner
United States Board of Tax Appeals
Where the income tax due from the beneficiary of a trust is paid by the trustee out of income and only the remainder of the income is paid over to the beneficiary, the beneficiary is required to include in gross income the amount of income tax thus paid for her by the trust.
1Opinion of the Court
OPINION.
Smith:
These two appeals, consolidated for hearing, involve income tax liabilities for the years 1928 and 1929 in the respective amounts of $8,592.57 and $4,800.45.
The issue for 1928 is whether the petitioners’ decedent’s distributive share of income from the estate of Charles E. Johnson should be increased by $84,370.25 representing payment of Federal income tax by the trustees on behalf of the decedent. The issue for 1929 is whether petitioners’ decedent’s distributive share of income from the estate of Charles E. Johnson should be increased by $18,945.11 representing payment of…
2Cases cited4 opinions
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Helvering v. ButterworthSupreme Court of the United States · 1933
- United States v. Boston & Maine RailroadSupreme Court of the United States · 1929
- Matter of PflommNew York Court of Appeals · 1925
3Cited by3 opinions
- Mahler v. CommissionerUnited States Tax Court · 1987
- Bergan v. CommissionerUnited States Board of Tax Appeals · 1934
- Godfrey v. CommissionerUnited States Tax Court · 1943