Stanton v. Commissioner
United States Tax Court
1. Interest or Capital Gain -- Profit on Sale of Non-interest-Bearing Notes. -- Commissioner did not err in holding that a profit on the sale of non-interest-bearing notes is taxable as interest and was not a part of sales proceeds of the notes for income tax purposes.
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1. Interest or Capital Gain -- Profit on Sale of Non-interest-Bearing Notes. -- Commissioner did not err in holding that a profit on the sale of non-interest-bearing notes is taxable as interest and was not a part of sales proceeds of the notes for income tax purposes. F. Rodney Paine, 23 T.C. 391, followed. 2. Interest -- Sec. 23(b). -- Interest on genuine indebtedness incurred to buy short-term obligations non-interest-bearing or with interest at a lower rate than that being paid on the indebtedness is deductible under section 23(b) regardless of whether the taxpayer anticipated that the…
1Opinion of the Court
OPINION.
Murdock, Judge:
Lee sold the C.I.T. notes in 1953 and reported for that year on that transaction a long-term capital gain. The Commissioner, in determining the deficiency for that year, taxed the gain as interest instead of allowing it to be included in the sales proceeds of the notes for tax purposes. He eliminated the gain as a long-term capital gain. The Commissioner’s action is supported by the decision of this Court in F. Rodney Paine, 23 T.C. 391. Cf. Charles T. Fisher, 19 T.C. 384, affd. 209 F. 2d 513, certiorari denied 347 U.S. 1014, and Arnfeld v. United States, 163 F. Supp.…
2Cases cited24 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Eli D. Goodstein v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Eli D. GoodsteinCourt of Appeals for the First Circuit · 1959
- Carl E. Weller and Emily I. Weller v. Commissioner of Internal Revenue, W. Stuart Emmons v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1959
- Emmons v. CommissionerUnited States Tax Court · 1958
- Weller v. CommissionerUnited States Tax Court · 1958
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3Cited by68 opinions
- Bixby v. CommissionerUnited States Tax Court · 1972
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- Sandor v. CommissionerUnited States Tax Court · 1974
- United States v. Midland-Ross Corp.Supreme Court of the United States · 1965
- Joseph H. Bridges and Lillier J. Bridges v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1963
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