Highland Farms Corp. v. Commissioner
United States Board of Tax Appeals
1. The cancellation by court decree of bonds of a corporation whose assets have decreased in value to such an extent that the corporation is insolvent, held, to result in no taxable gain. 2. A corporation which has in earlier years taken deductions for interest paid on its bonds but which is insolvent at the time a recovery of such interest is applied to the debt upon cancellation of the bonds, held, to realize no taxable gain upon any part of the cancellation. 3. Damages…
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1. The cancellation by court decree of bonds of a corporation whose assets have decreased in value to such an extent that the corporation is insolvent, held, to result in no taxable gain. 2. A corporation which has in earlier years taken deductions for interest paid on its bonds but which is insolvent at the time a recovery of such interest is applied to the debt upon cancellation of the bonds, held, to realize no taxable gain upon any part of the cancellation. 3. Damages against a bank-mortgagee awarded to a corporation for injuries resulting from a course of conduct pursued by the bank's…
1Opinion of the Court
*1319OPINION.
KeRN :
1. The Commissioner added to _ income $87,844.63 “gain from cancellation and redemption of mortgage bonds”, computed by deducting from the $200,000 face value of the bonds issued by petitioner the aggregate of (1) $6,000 discount on issuance, (2) $51,-900 representing bonds retired at par by Fidelity with money supplied by petitioner, less $1,557 discount applicable to such retired bonds, (3) $3,907.56 representing funds collected by Fidelity on notes and contracts pledged by petitioner under the mortgage and used to redeem the bonds, and (4) $51,904.81 of the damage award used…
2Cases cited8 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- United States v. AndersonSupreme Court of the United States · 1926
- Burnet v. Sanford & Brooks Co.Supreme Court of the United States · 1931
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Bowers v. Kerbaugh-Empire Co.Supreme Court of the United States · 1926
3 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- State Fish Corp. v. CommissionerUnited States Tax Court · 1967
- Allen Kaiser, Plaintiff-Appelllant v. United StatesCourt of Appeals for the Seventh Circuit · 1958
- Commissioner of Internal Revenue v. Glenshaw Glass Co. Commissioner of Internal Revenue v. William Goldman Theatres, IncCourt of Appeals for the Third Circuit · 1954
- Park & Tilford Distillers Corp. v. United StatesUnited States Court of Claims · 1952
- Sheraton Plaza Co. v. CommissionerUnited States Tax Court · 1963
8 more not listed; retrieve them via the Exa API.