United States Fidelity & Guaranty Co. v. Commissioner
United States Board of Tax Appeals
A loan made by the Reconstruction Finance Corporation ostensibly to petitioner's subsidiary, but actually for petitioner's benefit in connection with which petitioner's preferred stock was delivered to the lender, held to justify deduction of payments to the Reconstruction Finance Corporation either as interest paid on petitioner's obligation or as dividends on stock held by an instrumentality of the United States. Revenue Act of 1934, secs. 23(b) and 121.
1Opinion of the Court
*1017OPINION.
Oppek :
This proceeding presents the single question of the deduc-tibility of certain payments made in the year 1935 to the Reconstruction Finance Corporation. Briefly stated, the facts giving rise to the controversy are that the petitioner in a prior year and at the request of R. F. C. had paid off a loan owing to the latter from the proceeds of a transaction whereby a note of petitioner’s wholly owned subsidiary, the Del Mar.Co., and preferred stock of petitioner issued for the purpose, were used to obtain funds from the R. F. C. These funds in turn were repaid to the latter in…
2Cases cited3 opinions
- Building Engineering Co. v. . Northern BankNew York Court of Appeals · 1912
- Elswick v. CombsSupreme Court of Virginia · 1938
- Browning v. FullerSupreme Court of Virginia · 1929
3Cited by1 opinion
- United States Fidelity & Guaranty Co. v. CommissionerUnited States Board of Tax Appeals · 1939