Bowen v. Commissioner
United States Tax Court
Petitioners' decedent was in debt to a national bank at the time of his death in December 1935. The bank was insolvent and in the hands of a receiver. The notes evidencing the indebtedness were secured by collateral. By agreement, the receiver was paid direct from year to year the dividends on the stock and also the proceeds resulting from the sale of the collateral.
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Petitioners' decedent was in debt to a national bank at the time of his death in December 1935. The bank was insolvent and in the hands of a receiver. The notes evidencing the indebtedness were secured by collateral. By agreement, the receiver was paid direct from year to year the dividends on the stock and also the proceeds resulting from the sale of the collateral. Payments were thus made in 1936, 1937, 1938, 1939, and 1940 and were applied by the receiver first to principal, then to interest. The legal representatives of decedent's estate directed the receiver in June 1937 to apply all…
1Opinion of the Court
OPINION.
Black, Judge:
The Commissioner determined deficiencies of $396.02 and $1,380.13, in petitioners’ income tax for the years 1939 and 1940, respectively. The deficiency for 1939 is due to the disallowance by the Commissioner of a deduction of $18,902.73 claimed by the taxpayer on its income tax return filed for that year as interest paid. This adjustment is explained by the Commissioner in his deficiency notice, as follows:(a) In your income tax return for the year 1939 an interest deduction was claimed in the amount of $18,902.73 representing payments allegedly made by you during said…
2Cases cited5 opinions
- Story v. LivingstonSupreme Court of the United States · 1839
- Payne v. AveryMichigan Supreme Court · 1870
- Wallace v. GlaserMichigan Supreme Court · 1890
- Leonard Refineries, Inc. v. GregoryMichigan Supreme Court · 1940
- Mauro v. DavieMichigan Supreme Court · 1926
3Cited by17 opinions
- Motel Corp. v. CommissionerUnited States Tax Court · 1970
- Bair v. CommissionerUnited States Tax Court · 1951
- Newhouse v. CommissionerUnited States Tax Court · 1973
- Brainard v. CommissionerUnited States Tax Court · 1946
- Estate of Caplan v. CommissionerUnited States Tax Court · 1974
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