- 16 -
expressio unius est exclusio alterius”). We decline respondent’s
invitation to extend the operation of section 677(a) to the facts
at hand to treat Textron as the owner of the Avdel shares for the
purpose of section 951(a).
C. Application of Subpart F to the Voting Trust and Subpart
E to Textron
Domestic trusts are generally taxable entities whose taxable
income is computed in the same manner as that of individuals.
Sec. 641. Generally speaking, an arrangement will be treated as
a trust under the Internal Revenue Code if it can be shown that
the purpose of the arrangement is to vest in a trustee
responsibility for the protection and conservation of property
for one or more beneficiaries who cannot share in the discharge
of this responsibility and, therefore, are not associates in a
joint enterprise for the conduct of business for profit. Sec.
301.7701-4, Proced. & Admin. Regs. An arrangement, therefore,
will be classified as a trust for Federal income tax purposes if
it is a bona fide transaction that involves a trustee, a
beneficiary, and trust property (res). See Bibby v.
Commissioner, 44 T.C. 638 (1965); see also Estate of Wedum v.
Commissioner, T.C. Memo. 1989-184 (“The elements of a valid
express trust * * * are: (1) a designated trustee subject to
enforceable duties, (2) a designated beneficiary vested with
enforceable rights, and (3) a definite trust res wherein the
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