Pacific Southwest Realty Co. v. Commissioner
United States Board of Tax Appeals
1. In conformity with its articles of incorporation petitioner issued and sold two series of "Cumulative Preferred Serial Stock." The certificates stated that they were redeemable at par, plus all unpaid, accrued, or accumulated dividends, and that the holders should have the right to enforce payment the same as on any unconditional claim or debt against the corporation.
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1. In conformity with its articles of incorporation petitioner issued and sold two series of "Cumulative Preferred Serial Stock." The certificates stated that they were redeemable at par, plus all unpaid, accrued, or accumulated dividends, and that the holders should have the right to enforce payment the same as on any unconditional claim or debt against the corporation. The articles also authorized the corporation to issue bonds, though the total indebtedness of the corporation could not exceed 50 percent of the appraised value of the property subject thereto. First mortgage bonds in an…
1Opinion of the Court
OPINION.
Mellott :
The Commissioner determined deficiencies in income tax for the calendar years 1936 and 1937 in the respective amounts of $842.75 and $13,878.81. The petition alleges that there is no deficiency for either year and that petitioner overpaid its income taxes for the year 1936 in the amount of $53,900.53. The two general questions are: (1) Whether securities issued by petitioner and designated either 6% percent or 514 percent cumulative preferred serial stock represented an indebtedness rather than a proprietary interest in the corporation; and (2) whether an amount paid by…
2Cases cited2 opinions
- County of San Diego v. DavisCalifornia Supreme Court · 1934
- Oaks v. KendallCalifornia Court of Appeal · 1937
3Cited by5 opinions
- Cramer v. CommissionerUnited States Tax Court · 1971
- Nelson v. CommissionerUnited States Tax Court · 1993
- Bonds, Inc. v. CommissionerUnited States Tax Court · 1944
- Cramer v. CommissionerUnited States Tax Court · 1971
- Pacific Southwest Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1941