Carey-Reed Co. v. Commissioner
United States Board of Tax Appeals
Interest on bonds issued by cities of the fourth and fifth class of the Commonwealth of Kentucky for street, paving, and sewer improvements payable exclusively out of collections of local improvement taxes assessed against the benefited property, held, interest on the obligations of a political subdivision of a state and exempt from tax under section 22(b)(4) of the Revenue Act of 1932.
1Opinion of the Court
OPINION.
Smith:
The respondent determined a deficiency in petitioner’s income tax for 1933 in the amount of $1,394.75, a part of which resulted from adding to the income reported by the petitioner interest received on the bonds of municipalities which were payable, interest and principal, exclusively out of collections of special taxes levied against the benefited property. The petitioner contends that the amount is tax exempt as interest received on obligations of a political subdivision of a state.
The petitioner is a corporation, with its principal office at Lexington, Kentucky. It was…
2Cases cited4 opinions
- Denman v. SlaytonSupreme Court of the United States · 1931
- City of Mt. Sterling v. Montgomery CountyCourt of Appeals of Kentucky · 1913
- Castle v. City of LouisaCourt of Appeals of Kentucky · 1920
- Shaw v. City of MayfieldCourt of Appeals of Kentucky · 1924
3Cited by6 opinions
- Independent Gravel Co. v. CommissionerUnited States Tax Court · 1971
- Bekins v. CommissionerUnited States Board of Tax Appeals · 1938
- Carey-Reed Co. v. CommissionerUnited States Board of Tax Appeals · 1937
- Heath v. CommissionerUnited States Board of Tax Appeals · 1938
- Independent Gravel Co. v. CommissionerUnited States Tax Court · 1971
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