Tampa & G. C. R. Co. v. Commissioner
United States Tax Court
Petitioner deducted accrued but unpaid interest on two purported bond issues which were each held by its parent corporation. No payment of either interest or principal had been made on either bond issue for 30 years. Petitioner was hopelessly insolvent throughout the years in issue and its parent was its only source of income.
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Petitioner deducted accrued but unpaid interest on two purported bond issues which were each held by its parent corporation. No payment of either interest or principal had been made on either bond issue for 30 years. Petitioner was hopelessly insolvent throughout the years in issue and its parent was its only source of income. The parent made no effort to employ the forced-collection procedures set forth in the indentures, and did not accrue as income the interest which petitioner was accruing as a deduction. Held, neither bond issue represents a valid indebtedness on which interest can be…
1Opinion of the Court
OPINION
FORRESTER, Judge;
All of the facts have been stipulated and are so found.
Respondent determined deficiencies in petitioner’s income tax for the years and in the amounts shown below:
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Petitioner denies that any tax is owing and claims an overpayment of $4,361.73 for the taxable year ended December 31,1960.
Concessions having been made, the sole issue remaining for decision is whether petitioner is entitled to deduct accrued but unpaid interest under section 163 1 on two purported bond issues.
For the years in issue petitioner had its main office in Richmond, Va., and filed…
2Cases cited14 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Fin Hay Realty Co. v. United StatesCourt of Appeals for the Third Circuit · 1968
- Gooding Amusement Co. v. CommissionerUnited States Tax Court · 1954
9 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Bixby v. CommissionerUnited States Tax Court · 1972
- Titcher v. CommissionerUnited States Tax Court · 1971
- Sartin v. United StatesUnited States Court of Claims · 1984
- Tampa & Gulf Coast Railroad Company v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1972
- Southeastern Mail Transport, Inc. v. CommissionerUnited States Tax Court · 1992
13 more not listed; retrieve them via the Exa API.