Monon Railroad v. Commissioner
United States Tax Court
The petitioner, a publicly owned corporation, issued 50-year 6-percent income debentures in exchange for most of the outstanding stock of one class. Interest on the debentures was accrued and paid for a period of 15 months prior to their issuance. Held, the debentures are instruments of indebtedness on which interest is deductible when accrued, including the interest attributed to the 15-month period prior to issuance.
1Opinion of the Court
Monon Railroad (formerly Chicago, Indianapolis and Louisville Railway Company), Petitioner v. Commissioner of Internal Revenue, Respondent
Monon Railroad v. Commissioner
Docket No. 5589-65
United States Tax Court
55 T.C. 345; 1970 U.S. Tax Ct. LEXIS 26;
November 25, 1970, Filed
Decision will be entered under Rule 50.
The petitioner, a publicly owned corporation, issued 50-year 6-percent income debentures in exchange for most of the outstanding stock of one class. Interest on the debentures was accrued and paid for a period of 15 months prior to their issuance. Held, the debentures are instruments of…
2Cases cited43 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Commissioner v. TowerSupreme Court of the United States · 1946
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
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