Bernstein v. Commissioner
United States Tax Court
Bonds on which interest had accrued but remained unpaid were exchanged in 1949, pursuant to a plan of reorganization, for new bonds of equal face amount, plus capital stock, "non-interest bearing interest certificates," and cash.
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Bonds on which interest had accrued but remained unpaid were exchanged in 1949, pursuant to a plan of reorganization, for new bonds of equal face amount, plus capital stock, "non-interest bearing interest certificates," and cash. Held: 1. The receipt of the cash and interest certificates did not constitute the receipt of interest income. 2. The interest certificates were "securities" within the meaning of section 112 (b) (3) of the Internal Revenue Code of 1939 and were not "other property or money" under section 112 (c) (1).
1Opinion of the Court
Estate of William Bernstein, Deceased, Edward Bernstein, Executor, and Selma Bernstein, Petitioners, v. Commissioner of Internal Revenue, Respondent
Bernstein v. Commissioner
Docket No. 41976
United States Tax Court
22 T.C. 1364; 1954 U.S. Tax Ct. LEXIS 87; 22 T.C. No. 169;
September 30, 1954, Filed September 30, 1954, Filed
Decision will be entered under Rule 50.
Bonds on which interest had accrued but remained unpaid were exchanged in 1949, pursuant to a plan of reorganization, for new bonds of equal face amount, plus capital stock, "non-interest bearing interest certificates," and cash. Held:
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2Cases cited4 opinions
- Camp Wolters Enterprises, Inc. v. CommissionerUnited States Tax Court · 1954
- Globe-News Publishing Co. v. CommissionerUnited States Tax Court · 1944
- Commissioner of Internal Revenue v. Carman. Carman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1951
- Bernstein v. CommissionerUnited States Tax Court · 1954