Jules R. Green v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Estate of Frederick A. Smith, Deceased, (Consolidated)

FAIRCHILD, Circuit Judge.

Taxpayers Jules and Harold Green and their wives reported, for 1956, $65,000 (rounded figure) as a capital gain on the sale of stock in 20 Cedar Street, Inc. The commissioner determined and the tax court found that this $65,000 was interest income. Taxpayer Frederick Smith and his wife claimed the same $65,000 as deductible interest paid, and the tax court found in their favor. The Greens seek review of the decision in their case, and the commissioner seeks review of the decision in Smith’s case, so as to achieve consistent results. Mr. Smith is deceased.

In 1955…