Bolnick v. Commissioner
United States Tax Court
1. Gain realized by petitioners on redemption prior to maturity at face amount of debentures issued to petitioners in 1953 at an original issue discount is taxable in part as ordinary income and in part as capital gain, where there was no specific intent on the part of the issuers at the date of issue to redeem the debentures prior to maturity and no understanding between the issuers and petitioners that the bonds would be redeemed prior to maturity. 2. Petitioners are…
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1. Gain realized by petitioners on redemption prior to maturity at face amount of debentures issued to petitioners in 1953 at an original issue discount is taxable in part as ordinary income and in part as capital gain, where there was no specific intent on the part of the issuers at the date of issue to redeem the debentures prior to maturity and no understanding between the issuers and petitioners that the bonds would be redeemed prior to maturity. 2. Petitioners are entitled to have amount claimed on their return as an overpayment taken into consideration in determining a deficiency or…
1Opinion of the Court
Ted Bolnick and Bertha Bolnick, Petitioners, v. Commissioner of Internal Revenue, Respondent
Bolnick v. Commissioner
Docket No. 3503-62
United States Tax Court
44 T.C. 245; 1965 U.S. Tax Ct. LEXIS 81;
May 28, 1965, Filed
Decision will be entered under Rule 50.
1. Gain realized by petitioners on redemption prior to maturity at face amount of debentures issued to petitioners in 1953 at an original issue discount is taxable in part as ordinary income and in part as capital gain, where there was no specific intent on the part of the issuers at the date of issue to redeem the debentures prior to maturity…
2Cases cited22 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Dixon v. United StatesSupreme Court of the United States · 1965
- Commissioner v. Gooch Milling & Elevator Co.Supreme Court of the United States · 1944
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
- United States v. Midland-Ross Corp.Supreme Court of the United States · 1965
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