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Commissioner v. Disston, 325 U.S. 442 (1945)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Commissioner v. Disston, 325 U.S. 442 (1945)
Commissioner v. Disston No. 59 Argued April 24, 1945 Decided June 4, 1945 325 U.S. 442
CERTIORARI TO THE CIRCUIT COURT OF APPEALS
FOR THE THIRD CIRCUIT
Syllabus
1. Irrevocable trusts for the benefit of minors provided for accumulation of the income from each beneficiary’s share until he reached the age of 21, for payment of the income thereafter during his lifetime, and for ultimate distribution of the corpus contingently. The trustees were authorized to apply, during the minority of any beneficiary, so much of the income from his share "as may be necessary" for his support, education, and comfort, and to expend up to 10% of the corpus in an "emergency."
Held: that gifts to the trusts were of "future interests," within the meaning of § 504(b) of the Revenue Act of 1932 and applicable Treasury Regulations, so that, in computing the gift tax, the $5,000 exclusion prescribed by that section was not allowable. Fondre v. Commissioner, 324 U.S. 18. P. 447.
2. A taxpayer claiming benefit of the 5,000 exclusion in computing a gift tax under § 504(b) of the Revenue Act of 1932 has the burden of showing that the gift to which the claim relates was not of a "future interest." P. 449.
3. In computing the gift tax pursuant to the formula prescribed by § 502 of the Revenue Act of 1932, an adjustment may be made in the net gift figure for an earlier year, even though assessment and collection of a gift tax for such earlier year be barred by limitations. P. 449.
144 F.2d 115 reversed.
Certiorari, 324 U.S. 832, to review the reversal of a decision of the Tax Court which sustained the Commissioner’s determination of deficiencies in gift taxes.
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Chicago: U.S. Supreme Court, "Syllabus," Commissioner v. Disston, 325 U.S. 442 (1945) in 325 U.S. 442 325 U.S. 443. Original Sources, accessed November 25, 2024, http://originalsources.com/Document.aspx?DocID=WICCMJQ5JA3D9DN.
MLA: U.S. Supreme Court. "Syllabus." Commissioner v. Disston, 325 U.S. 442 (1945), in 325 U.S. 442, page 325 U.S. 443. Original Sources. 25 Nov. 2024. http://originalsources.com/Document.aspx?DocID=WICCMJQ5JA3D9DN.
Harvard: U.S. Supreme Court, 'Syllabus' in Commissioner v. Disston, 325 U.S. 442 (1945). cited in 1945, 325 U.S. 442, pp.325 U.S. 443. Original Sources, retrieved 25 November 2024, from http://originalsources.com/Document.aspx?DocID=WICCMJQ5JA3D9DN.
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