Emmons v. Commissioner
United States Tax Court
In December 1951, petitioner purchased an annuity contract requiring 41 annual payments, each in the amount of $ 2,500. After making the first annual payment, petitioner borrowed $ 59,213.75 from a bank, using the proceeds to prepay at a discount all future premiums.
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In December 1951, petitioner purchased an annuity contract requiring 41 annual payments, each in the amount of $ 2,500. After making the first annual payment, petitioner borrowed $ 59,213.75 from a bank, using the proceeds to prepay at a discount all future premiums. He then paid the insurance company the additional amount of $ 13,627.30 as advance interest to the fifth anniversary date of the contract, and received as a loan $ 68,364, the cash or loan value to which the policy would otherwise attain on such future date. In 1952, he paid the insurance company an additional $ 9,699.64 as 3…
1Opinion of the Court
Fokeester, Judge:
Respondent has determined deficiencies in the income tax of petitioner and additions thereto as follows:
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The sole issue is whether respondent erred in determining that certain payments in 1951 and 1952 of, respectively, $13,627.30 and $9,699.64, are not deductible as interest paid within the purview of section 23 (b) of the Internal Revenue Code of 1939.
FINDINGS OF FACT.
Some of the facts have been stipulated and are so found.
Petitioner is an individual residing in Haverford, Pennsylvania. His individual income tax returns for the calendar years 1951 and 1952 were…
2Cases cited6 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Goodstein v. CommissionerUnited States Tax Court · 1958
- United States v. Robert Rutherford Bond and Margaret E. BondCourt of Appeals for the Fifth Circuit · 1958
1 more not listed; retrieve them via the Exa API.
3Cited by87 opinions
- Carl E. Weller and Emily I. Weller v. Commissioner of Internal Revenue, W. Stuart Emmons v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1959
- Davis v. CommissionerUnited States Tax Court · 1976
- Karme v. CommissionerUnited States Tax Court · 1980
- Weller v. CommissionerUnited States Tax Court · 1958
- Stanton v. CommissionerUnited States Tax Court · 1960
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