Caulkins v. Commissioner
United States Tax Court
Petitioner, in 1928, acquired an "Accumulative Investment Certificate" under the terms of which the issuing company agreed to pay him, at the expiration of ten years if the payments provided for therein were made, an amount substantially greater than the aggregate of the payments made. The certificate was in registered form. During the taxable year it was retired by payment.
Read the full summary
Petitioner, in 1928, acquired an "Accumulative Investment Certificate" under the terms of which the issuing company agreed to pay him, at the expiration of ten years if the payments provided for therein were made, an amount substantially greater than the aggregate of the payments made. The certificate was in registered form. During the taxable year it was retired by payment. Held that the amount received in excess of the amount paid is taxable as a capital gain under section 117 (f) of the Revenue Act of 1938.
1Opinion of the Court
OPINION.
Mellott, Judge:
A single question is presented: Is the profit of $4,956.67 includible in toto in petitioner’s taxable income, or did he correctly include but 50 percent ? The answer depends upon whether the amount was ordinary income or capital gain. The applicable provisions of the Eevenue Act of 1938 are shown in the margin.1
Eespondent attempts to support Ms determination by pointing out that the difference between the amount paid by petitioner and the amount received by him represented a price paid for the use of money. He therefore characterizes it as interest. In the alternative…
2Cases cited4 opinions
- Fairbanks v. United StatesSupreme Court of the United States · 1939
- Helvering v. William Flaccus Oak Leather Co.Supreme Court of the United States · 1941
- McClain v. CommissionerSupreme Court of the United States · 1941
- In re Investors SyndicateSupreme Court of Minnesota · 1920
3Cited by41 opinions
- Goodstein v. CommissionerUnited States Tax Court · 1958
- United States v. Midland-Ross Corp.Supreme Court of the United States · 1965
- Stanton v. CommissionerUnited States Tax Court · 1960
- Commissioner of Internal Revenue v. CaulkinsCourt of Appeals for the Sixth Circuit · 1944
- Commissioner of Internal Revenue v. J. I. Morgan and Frances MorganCourt of Appeals for the Ninth Circuit · 1959
36 more not listed; retrieve them via the Exa API.