Klein v. Commissioner
United States Board of Tax Appeals
INCOME - INTEREST ON CONDEMNATION AWARD NOT EXEMPT. Interest received by the petitioners from New York City on a condemnation award is not exempt from tax under section 22(b)(4) of the Revenue Act of 1928, as such award is not the character of obligation meant in said section. (Kansas City Southern Railway Co.,16 B.T.A. 665; affd., 52 Fed.(2d) 372, followed.)
1Opinion of the Court
*747OPINION.
Black:
It is the contention of petitioners that the Revenue Act of 1928 specifically exempts from income tax interest on obligations of a state or any political subdivision thereof, and that the word “ obligations ” includes in its meaning the obligation of a political subdivision of a state to make just compensation for property taken under the power of eminent domain. The' applicable part of the Revenue Act of 1928 is printed in the margin.1
The question involved in the present proceeding is ruled by our decision in Kansas City Southern Railway Co., 16 B. T. A. 665; aff'd., 52 Fed.…
2Cases cited1 opinion
- Hurst v. SelvidgeTennessee Supreme Court · 1847
3Cited by4 opinions
- New Orleans Land Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Carey-Reed Co. v. CommissionerUnited States Board of Tax Appeals · 1937
- Isham v. CommissionerUnited States Board of Tax Appeals · 1932
- Klein v. CommissionerUnited States Board of Tax Appeals · 1932