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separate account until actually earned (i.e., when the legal
services were performed) and could not be used by the partnership
while they were in the separate account. See Miele v.
Commissioner, supra at 285-286. The Court held that the prepaid
fees were not includable in income (being neither actually nor
constructively received) until actually earned. See id. at 290-
291.
Petitioner’s argument for the existence of a trust is that
he is collecting and holding moneys in trust for the benefit of
the Clerk of Court for Charleston County. Petitioner points to
the fact that the accounts or certificates of deposit were held
in trust in the name of the Clerk of Court for Charleston County
for the “sole protection and benefit of the holder of bail
bonds.” However, the key question is whether petitioner acquired
a beneficial interest in the funds at the time of their deposit.
See Johnson v. Commissioner, 108 T.C. at 475. He clearly did:
The deposits would ultimately inure to his benefit. First,
petitioner chose whether funds from the Charleston County Court
account, or some other funds, were used to pay any bond
forfeiture owed to the County. Second, even if payments were
made from the account, they would be to petitioner’s benefit,
because they would satisfy an obligation of petitioner. Finally,
petitioner ultimately would receive the amounts remaining on
deposit in the account. On the other hand, in Angelus Funeral
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