Marbelite Corp. of America v. Commissioner
United States Board of Tax Appeals
1. The rule laid down in Burnet v. Logan,283 U.S. 404, is not applicable to an ordinary real estate subdivision trust in the absence of proof of exceptional facts. 2. Section 704(b) of the Revenue Act of 1928, permitting the taxation of the income of certain classes of trusts to the beneficiaries at the option of the trustee, is valid.
1Opinion of the Court
OPINION.
Marquette :
The respondent has determined a deficiency in income tax for the year 1926 in the amount of $856.87. The only error alleged is that the respondent has included in the taxable income of the petitioner for the year 1926 the sum of $6,347.18, on the ground that this amount constituted undistributed profits of certain *1152trusts. This proceeding was submitted on the following stipulation of facts:
During the year 1925 petitioner purchased 55.4/1000ths of the beneficial interests in trusts Nos. S-6318 and S-6365, Title Insurance and Trust Company, Trustee. The cost of said interests…
2Cases cited13 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Martin v. Hunter's LesseeSupreme Court of the United States · 1816
- Field v. ClarkSupreme Court of the United States · 1892
- Cooley v. Board of Wardens of Port of Philadelphia Ex Rel. Soc. for Relief of Distressed PilotsSupreme Court of the United States · 1852
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
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3Cited by1 opinion
- Marbelite Corp. of America v. CommissionerUnited States Board of Tax Appeals · 1934