Lieb v. Commissioner
United States Tax Court
H purchased callable bonds at a premium on the open market. The amortization deduction of the excess of the purchase price over the special call price is not in issue. Six months and one day thereafter H "sold" the bonds to W, his wife, and forty-nine days after that W "sold" the bonds back to H. Held, the sales between H and W were lacking in bona fides and amortization deductions are not allowable in respect of such sales. Sec. 171, I.R.C. 1954.
1Opinion of the Court
OPINION
BAtrar, Judge:
The Commissioner originally disallowed the entire $12,062.50 amortization deduction, consisting of three components in the amounts of $3,437.50, $5,875, and $2,750. He now concedes that the $3,437.50 amortization in respect of David’s original purchase is deductible under section 171, I.R.C. 1954 (Hanover Bank v. Commissioner, 369 U.S. 672; Rev. Rul. 62-127, 1962-2 C.B. 84), but he strenuously contests the further deductions of $5,875 and $2,750 jn respect of Sylvia’s purported purchase from David on June 29, 1955, and David’s purported repurchase from Sylvia less than 2…
2Cases cited23 opinions
- Helvering v. MitchellSupreme Court of the United States · 1938
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Hanover Bank v. CommissionerSupreme Court of the United States · 1962
- Carl E. Weller and Emily I. Weller v. Commissioner of Internal Revenue, W. Stuart Emmons v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1959
- Emmons v. CommissionerUnited States Tax Court · 1958
18 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Henry C. Beck Builders, Inc. v. CommissionerUnited States Tax Court · 1964
- Callan v. Comm'rUnited States Tax Court · 1970
- Callan v. Comm'rUnited States Tax Court · 1970
- Henry C. Beck Builders, Inc. v. CommissionerUnited States Tax Court · 1964
- Lieb v. CommissionerUnited States Tax Court · 1963
3 more not listed; retrieve them via the Exa API.