Affiliations

• Cochran v. United States

  United States Court of Claims · 1945-11-05 · cited 6×

  The case involved a taxpayer's suit to recover an overpayment of 1934 income taxes based on an unclaimed deduction for $10,000 in stock that became worthless that year. The court held it had jurisdiction because the timely filed refund claim stating a broad ground of 'losses not claimed' could be amended to specify the stock loss even if the amendment arrived after the filing deadline, and it granted the taxpayer a deduction of $5,000. The core reasoning was that the original claim was susceptible of amendment without introducing a new ground, the trust under which the stock was held was revocable with the wife holding an equal beneficial interest but no substantial adverse interest, and section 166 of the Revenue Act of 1934 therefore required the grantor to include only half the trust's income and losses.

  taxesprocedure

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• Newbury v. United States

  United States Court of Claims · 1944-10-02 · cited 10×

  The case concerned whether a trust beneficiary who was also the trustee could claim a personal income tax deduction for her one-third share of depreciation on trust properties under the Revenue Acts of 1934 and 1936. Plaintiff Newbury, life beneficiary of one-third of trust income with a remainder interest, argued she was entitled to deduct $47,623 of the trust's $142,868.98 annual depreciation on her individual returns for 1935-1937. The court held that the deduction was not available to her but instead properly taken by the trustee on the fiduciary returns. The core reasoning was that section 23(l) requires apportionment of the depreciation deduction according to the trust instrument's provisions; here the will directed that amounts for depreciation reserves be added to corpus rather than distributed as income to beneficiaries, so the trustee alone could claim the deduction.

  taxesproperty

  Read the full opinion inline ▾ (3,629 words)