Zmuda v. Commissioner
United States Tax Court
1. Petitioners, residents of Olympia, Wash., in 1977 caused to be created in the British West Indies three purported "common law business trusts," S, M, and B. Petitioners used preprinted forms acquired as part of a package from an organization in Alaska to formalize the trusts, and used a native of B.W.I., a stranger to them, as the "creator" of the trusts.
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1. Petitioners, residents of Olympia, Wash., in 1977 caused to be created in the British West Indies three purported "common law business trusts," S, M, and B. Petitioners used preprinted forms acquired as part of a package from an organization in Alaska to formalize the trusts, and used a native of B.W.I., a stranger to them, as the "creator" of the trusts. Certificates of beneficial interests were issued for nominal amounts but by their terms gave the holders no interest in the income, management, or corpus of the trusts except in the event of termination. The trustees were given fee simple…
1Opinion of the Court
Drennen, Judge:
Respondent determined deficiencies in and additions to petitioner’s Federal income taxes as follows:
Additions to tax
Year Deficiency sec. 6653(a)1
1976 $1,358 0
1977 1,341 $67
1978 2,106 105
After concessions,2 the issues are (1) whether petitioners are taxable in 1977 and 1978 on income received by a purported "common law business trust”; (2) whether petitioners are entitled to a deduction for amounts paid in 1977 to purchase a package of materials informing them on how to set up the "common law business trusts”; (3) whether petitioners are entitled to a charitable deduction in…
2Cases cited21 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Gregory v. HelveringSupreme Court of the United States · 1935
- Bixby v. CommissionerUnited States Tax Court · 1972
- Hatfield v. CommissionerUnited States Tax Court · 1977
- Nat Harrison Assoc., Inc. v. CommissionerUnited States Tax Court · 1964
16 more not listed; retrieve them via the Exa API.
3Cited by260 opinions
- George v. Zmuda and Walburga Zmuda v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1984
- Freytag v. CommissionerUnited States Tax Court · 1987
- Waddell v. CommissionerUnited States Tax Court · 1986
- Professional Services v. CommissionerUnited States Tax Court · 1982
- Ewing v. CommissionerUnited States Tax Court · 1988
255 more not listed; retrieve them via the Exa API.