United States Supreme Court Cases & Opinions

U.S. Supreme Court

City Bank Farmers Trust Co. v. Helvering, 313 U.S. 121 (1941)

City Bank Farmers Trust Co. v. Helvering

Nos. 408 and 409

Argued April 1, 1941

Decided April 28, 1941

313 U.S. 121

Syllabus

The administration of a trust by a testamentary trustee whose duties and activities are confined to holding and safeguarding a fund of stocks and bonds, collecting income, making safe investments and reinvestments, distributing income to beneficiaries, keeping accounts, preparing and filing income tax returns, etc., is not a "carrying on business" within § 23(a) of the Revenue Act of 1928. Hence, the commissions allowed and paid the trustee are not deductible under that section as expenses of carrying on a business. In computing the taxable income, the trust is subject to the same rules as an individual, Revenue Act, 1928, §§ 161-162. Higgins v. Commissioner, 312 U. S. 212, followed. P. 313 U. S. 124.

112 F.2d 457 affirmed.

Page 313 U. S. 122

Certiorari, 312 U.S. 672, to review a judgment affirming a decision of the Board of Tax Appeals, 39 B.T.A. 29.

Page 313 U. S. 123