Investors Ins. Agency, Inc. v. Commissioner
United States Tax Court
Certain individuals initially guaranteed a minimum rate of return on petitioner's investment in a joint venture. Subsequently, the individuals paid the interest accrued to the date of payment and agreed to thereafter make periodic payments as the interest accrued and to pay the principal amount at a date certain, if not previously paid to petitioner by the joint venture. Held, the accrued payment is interest for personal holding company income purposes.
1Opinion of the Court
OPINION
Nims, Judge:
Respondent has determined an income tax deficiency of $29,434 for the calendar year 1974. The sole issue for determination is whether the sum of $130,000 received by petitioner during 1974 constitutes “interest,” thereby subjecting petitioner to the personal holding company tax under section 541.1
The facts in this case were fully stipulated. The stipulation of facts and attached exhibits are incorporated herein by reference.
The petitioner maintained its principal office in Seattle, Wash., at the time the petition in this case was filed. The corporate tax return for the…
2Cases cited5 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Autenreith v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1940
- Rushing v. CommissionerUnited States Tax Court · 1972
- Commissioner of Internal Revenue v. BanfieldCourt of Appeals for the Ninth Circuit · 1941
- McCoy-Garten Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1928
3Cited by11 opinions
- Smith v. CommissionerUnited States Tax Court · 1985
- Investors Insurance Agency, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1982
- Hunt v. CommissionerUnited States Tax Court · 1990
- Krueger Co. v. CommissionerUnited States Tax Court · 1982
- TAIYO HAWAII CO. v. COMMISSIONERUnited States Tax Court · 1997
6 more not listed; retrieve them via the Exa API.