(DOWNLOAD) "Bank of New York v. Helvering" by United States Court of Appeals for the Second Circuit # eBook PDF Kindle ePub Free

August 03, 2021

eBook details

Title: Bank of New York v. Helvering
Author : United States Court of Appeals for the Second Circuit
Release Date : January 04, 1943
Genre: Law,Books,Professional & Technical,
Pages : * pages
Size : 56 KB

Description

The executors of Demarest appeal from an order of the Tax Court, assessing a deficiency against them upon their testators income tax for a part of the year 1937: i.e., for the period between January 1 and July 11, the day on which the testator died. At the time of his death Demarest had qualified and he and one, Hotaling, were acting as executors of Jennie E. Read, who had died in New York on February 22, 1936, and upon whose will letters testamentary were issued to them on April 6, 1936. For the purposes of this case the important words of the will were as follows: "I direct that each of them so specifically named above by me as executors and trustees shall receive, and I give to each of them in lieu of statory commissions for his services five percent (5%) of the principal of my estate and five percent (5%) each year upon the income." If either or both should die before her, or should "fail to quality, or resign or be removed or die before completing either as executors or trustees the administration of my Will and trusts thereunder," the testatrix appointed a bank as substitute, and directed that it should receive only statutory commissions. At the time of the execution of the will - June 4, 1934 - Demarest was over 70 years old, Hotaling was 77. While Demarest lived he received as executor and trustee within the period mentioned, over $81,000, and after his death his executors collected $8,000 more, making nearly $90,000 in all: five precent of the estate. His executors included in his gross income for 1937 two-fifths of this sum, two percent being the statutory commission allowed by the New York statute; they regarded the remaining three percent as a legacy and as not taxable for that reason. The Commissioner assessed a deficiency upon this three percent on the theory that the whole five percent was "compensation for personal service" under 22(a) of the Revenue Act of 1936, 26 U.S.C.A. Int. Rev. Acts, page 825; and the Tax Court Affirmed his ruling.