Motor Products Corp. v. Commissioner
United States Board of Tax Appeals
1. INCOME - EXCHANGE OF PROPERTY. - Held, that a refunding of outstanding defaulted bonds of the city of Detroit pursuant to a refunding agreement did not create a new debt, but resulted in a continuation of the existing indebtedness; held, further, that petitioner's surrender of defaulted bonds and receipt of the refunding bonds in lieu thereof, as evidence of the city's continuing indebtedness or loss. 2. DEDUCTION. - Where a debt was charged off and deducted by the…
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1. INCOME - EXCHANGE OF PROPERTY. - Held, that a refunding of outstanding defaulted bonds of the city of Detroit pursuant to a refunding agreement did not create a new debt, but resulted in a continuation of the existing indebtedness; held, further, that petitioner's surrender of defaulted bonds and receipt of the refunding bonds in lieu thereof, as evidence of the city's continuing indebtedness or loss. 2. DEDUCTION. - Where a debt was charged off and deducted by the taxpayer in its return for 1933 and in 1936 the taxpayer received $12,429.90 through assignment to another of its claim for…
1Opinion of the Court
Tyson:
In this proceeding the respondent has determined the following deficiencies against the petitioner:
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The petitioner’s assignments of error and the respondent’s affirmative averments present the following issues:
First. — This issue involves the following questions: (a) Upon the sale by petitioner in 1936 and the redemption by the city of Detroit in 1937 of refunding bonds (series A) of that city, is the basis for determining gain or loss the cost to petitioner of defaulted bonds of that city which petitioner had purchased in 1931 and surrendered to the city in 1934 pursuant…
2Cases cited2 opinions
- Weiss v. StearnSupreme Court of the United States · 1924
- Wilcox v. Board of CommissionersMichigan Supreme Court · 1933
3Cited by18 opinions
- Emery v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1948
- Olmstead, Inc. Life Agency v. CommissionerUnited States Tax Court · 1960
- Commissioner of Internal Revenue v. Olmsted Incorporated Life AgencyCourt of Appeals for the Eighth Circuit · 1962
- Girard Trust Co. v. United StatesCourt of Appeals for the Third Circuit · 1948
- Shafer v. United StatesDistrict Court, S.D. Ohio · 1962
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