Midland Nat'l Life Ins. Co. v. Commissioner
United States Board of Tax Appeals
1. Respondent's action in including in gross income the amount of exempt interest in approved. 2. Petitioner is entitled to a deduction in computing net income under section 245(a)(2) of the Revenue Act of 1924 in the amount of 4 per cent of the mean of the reserve funds required by law and held at the beginning and end of the taxable year, undiminished by the amount of exempt interest.
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1. Respondent's action in including in gross income the amount of exempt interest in approved. 2. Petitioner is entitled to a deduction in computing net income under section 245(a)(2) of the Revenue Act of 1924 in the amount of 4 per cent of the mean of the reserve funds required by law and held at the beginning and end of the taxable year, undiminished by the amount of exempt interest. National Life Insurance Co. v. United States,277 U.S. 508. 3. An amount deposited by petitioner with the Commissioner of Insurance of South Dakota as a condition precedent to the right to do business within…
1Opinion of the Court
*201OPINION.
Lansdon:
On its income-tax return petitioner failed to include in gross income exempt interest in the amount of $25,000.26. From the amount returned as gross income it deducted $25,000.26 exempt interest. The respondent allowed the deduction but recomputed *202gross income, including the exempt interest therein, as provided for in section 244 (a) of the Revenue Act of 1924, which follows:
In the case of a life insurance company the term “ gross income ” means the gross amount of income received during the taxable year from interest, dividends, and rents.
It is clear that exempt interest is…
2Cases cited1 opinion
- United States v. BiggsSupreme Court of the United States · 1909
3Cited by9 opinions
- North American Reassurance Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Chemical Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1934
- Chemical National Bank of New York v. CommissionerUnited States Board of Tax Appeals · 1934
- GREAT SOUTHERN LIFE INS. CO. v. COMMISSIONERUnited States Board of Tax Appeals · 1935
- Independent Life Ins. Co. v. CommissionerUnited States Board of Tax Appeals · 1929
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