H. R. De Milt Co. v. Commissioner
United States Board of Tax Appeals
1. Upon the organization of the petitioner, it issued twenty-year 6 per cent debentures and common stock for the assets of an existing partnership. Held, upon the evidence, that the debentures represent evidences of indebtedness and may not be included in invested capital. 2. The selling price of certain shares of stock for cash immediately after organization of a corporation is not sufficient of itself to establish the value of good will.
1Opinion of the Court
*9OPINION.
Littleton :
The question of whether or not instruments somewhat similar in character to the one here in question should be considered as capital stock or evidence of indebtedness has been before the Board on several occasions and in each instance it has been emphasized that the final determination must be made upon a legal interpretation of the meaning of the entire instrument and not upon the name by which it was denominated. Fletcher’s Cyclopedia on Corporations, vol. 6, p. 6020, lays down the principle that:
Whether or not the holder of a particular instrument or certificate is to be…
2Cited by11 opinions
- Helvering v. Richmond, F. & P. R. Co.Court of Appeals for the Fourth Circuit · 1937
- Lawton v. CommissionerUnited States Tax Court · 1959
- Monon Railroad v. CommissionerUnited States Tax Court · 1970
- O. P. P. Holding Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Bonds, Inc. v. CommissionerUnited States Tax Court · 1944
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