- 5 - O'Neill v. Commissioner, 994 F.2d 302 (6th Cir. 1993), revg. 98 T.C. 227 (1992), and pointing out the fiduciary obligations imposed upon the trustees, petitioner contends that the expenses would not have been incurred if the property were not held by the trust. Under petitioner's theory of the case, because pursuant to section 67(e) the expenses are taken into account in computing adjusted gross income, the provisions of section 67(a) are not applicable. We turn our attention first to the status of the trust for Federal income tax purposes. In petitioner's brief, as a general criticism of respondent's position, and with reference to the trust restrictions on the distribution of corpus, petitioner states: "[respondent] fails to note that in the instant case although the form of * * * [the trust] is that of a grantor's trust, in substance it is similar to an irrevocable trust or mutual fund." According to petitioner, we should consider the trust as other than a grantor trust. Petitioner's reliance upon section 67(e) and O'Neill v. Commissioner, supra, is consistent with treating the trust as other than a grantor trust. However, such treatment is inconsistent with the stipulation of facts, in which petitioner agreed not only that the trust "is a grantor trust", but further, in apparent reliance upon section 671, that "each item of income and expense [of the trust] is reported individually by the grantor". Considering the trust as otherPage: Previous 1 2 3 4 5 6 7 8 Next
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