Tandy Corporation v. United States

RANDALL, Circuit Judge:

This case presents the question whether a corporation is entitled to deduct, for federal income tax purposes, the accrued interest and bond premium that would have been payable to holders of the corporation’s convertible debentures called for redemption if such holders had not converted such debentures into common stock of the corporation prior to the redemption date. The district court held that the corporation was not entitled to deduct such accrued interest or bond premium, 1979-1 Tax Cas. (CCH) ¶ 9160 (S.D. Tex. 1979), and we affirm the judgment of the district…