Brainard v. Commissioner
United States Board of Tax Appeals
In December 1927 petitioner declared a parol trust in all profits which might thereafter be derived by him from trading in securities during the year 1928, to be held by him in trust for the members of his family. Held, the profits so derived by the petitioner during 1928 are taxable to him as part of his gross income for that year.
1Opinion of the Court
opinion.
Trammell:
This proceeding is for the redetermination of a deficiency in income tax for the year 1928 in the amount of $34,121.64. The issue is whether “ respondent erred, by adding to petitioner’s income the sum of $147,620.18 for alleged profit on stock trading.” In the deficiency letter respondent made the following explanation of his action:
The increase in income is due to transferring profits reported by your wife, mother and children, which you assigned to them upon the sale of the securities. You are advised that in as much as the assignment of these gifts took effect after the…
2Cases cited1 opinion
- Lucas v. EarlSupreme Court of the United States · 1930
3Cited by5 opinions
- Johnson v. CommissionerUnited States Tax Court · 1997
- Brainard v. CommissionerUnited States Board of Tax Appeals · 1935
- Gorham v. CommissionerUnited States Board of Tax Appeals · 1938
- Johnson v. CommissionerUnited States Tax Court · 1997
- Rameau A. and Phyllis A. Johnson v. CommissionerUnited States Tax Court · 1997