Capital Nat'l Bank v. Commissioner
United States Tax Court
1. Petitioner issued time certificates of deposit which were outstanding in 1942 and 1943. Held: The certificates of deposit are not includible in petitioner's borrowed capital for 1942 and 1943. National Bank of Commerce, 16 T. C. 579, followed. 2. Petitioner, a national bank on the charge-off basis as to bad debts in 1930, 1931, and 1932 reduced its accumulated earnings and profits on the recommendation of the national bank examiner by $ 50,000 in both 1930 and 1931…
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1. Petitioner issued time certificates of deposit which were outstanding in 1942 and 1943. Held: The certificates of deposit are not includible in petitioner's borrowed capital for 1942 and 1943. National Bank of Commerce, 16 T. C. 579, followed. 2. Petitioner, a national bank on the charge-off basis as to bad debts in 1930, 1931, and 1932 reduced its accumulated earnings and profits on the recommendation of the national bank examiner by $ 50,000 in both 1930 and 1931 because of the partial worthlessness of Reclamation District bonds by setting up a reserve for depreciation in value. It did…
1Opinion of the Court
OPINION.
Harron, Judge:
Issue 1. The first issue is whether certificates of deposit which were issued by petitioner and outstanding in 1942 and 1943 are properly includible in its borrowed capital under section 719 (a) (1) of the Internal Eevenue Code.2
Petitioner relies upon the decision of this Court in Ames Trust & Swings Bank, 12 T. C. 770, in support of its contention that the certificates of deposit are includible in its borrowed capital. Since the submission of petitioner’s argument on brief, however, the Court of Appeals for the Eighth Circuit has reversed the Ames case and decided that…
2Cases cited17 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Elliott v. Capital City State BankSupreme Court of Iowa · 1905
- Pancoast Hotel Co. v. CommissionerUnited States Tax Court · 1943
- Blair v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1937
- Commissioner of Internal Revenue v. Ames Trust & Sav. BankCourt of Appeals for the Eighth Circuit · 1950
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3Cited by24 opinions
- United States v. City Loan and Savings CompanyCourt of Appeals for the Sixth Circuit · 1961
- Valley Morris Plan v. CommissionerUnited States Tax Court · 1959
- Jackson Finance & Thrift Co. v. CommissionerUnited States Tax Court · 1957
- La Salle National Bank v. CommissionerUnited States Tax Court · 1954
- Morris Plan Co. v. CommissionerUnited States Tax Court · 1960
19 more not listed; retrieve them via the Exa API.