Graves Bros. Co. v. Commissioner
United States Tax Court
1. Debenture Notes -- Interest. -- Debenture notes issued to stockholders to cover open accounts representing unpaid dividends, salaries, and advances held to represent bona fide indebtedness and the interest thereon is deductible. 2. Property Used in Trade or Business -- Sales to Stockholders. -- Property acquired for use in trade or business does not lose that character merely because not actively so used in year of sale, and loss is deductible under Code section 117 (j).…
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1. Debenture Notes -- Interest. -- Debenture notes issued to stockholders to cover open accounts representing unpaid dividends, salaries, and advances held to represent bona fide indebtedness and the interest thereon is deductible. 2. Property Used in Trade or Business -- Sales to Stockholders. -- Property acquired for use in trade or business does not lose that character merely because not actively so used in year of sale, and loss is deductible under Code section 117 (j). Code section 24 (b) (2) does not authorize the tacking on of stock owned by a collateral relative in determining…
1Opinion of the Court
AhuNdell, Judge;
The respondent determined deficiencies in taxes for fiscal years ended June BO, 1943,1944, and 1945, as follows:
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At the hearing, counsel for the parties announced agreement as to issues concerning the rate of depreciation applicable to citrus groves, the loss sustained by the petitioner in the fiscal year 1943, and the gain realized in the fiscal year 1945 on the sale of property used in trade or business, and the income from advance oil royalties for the fiscal year 1945.
The issues presented for decision are: (1) Whether deductions are allowable for the fiscal…
2Cases cited13 opinions
- Burnet v. HarmelSupreme Court of the United States · 1932
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Carter-Colton Cigar Co. v. CommissionerUnited States Tax Court · 1947
- Wright v. CommissionerUnited States Tax Court · 1947
8 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Riss v. CommissionerUnited States Tax Court · 1971
- Howell v. CommissionerUnited States Tax Court · 1972
- Dr. P. Phillips & Son, Inc. v. CommissionerUnited States Tax Court · 1953
- Mary Pauline McKenney Joyce, Aloysius G. Casey and Gerard A. McDonough and Executors Under the Will of M. Pauline Casey, Deceased v. United StatesCourt of Appeals for the Third Circuit · 1966
- Uri v. CommissionerUnited States Tax Court · 1989
11 more not listed; retrieve them via the Exa API.