Fisher v. Commissioner
United States Tax Court
Capital Gain or Ordinary Income -- Sale of Accrued Interest on Indebtedness. -- The excess of the amount received by a creditor from a third party for notes and accrued interest of a debtor over the principal loaned on the notes is ordinary income under section 22(a) and not capital gain under section 117.
1Opinion of the Court
OPINION.
Murdock, Judge:
The petitioner claims that the notes of the Florida corporation which he held and the accrued unpaid interest thereon up to September 1, 1944, was property, that property was a capital asset which he had held for more than six months at the time of the sale, he sold it at a profit of $66,150.56, and that profit was a long term capital gain, only one-half of which had to be included in gross income, all in accordance with section 117. The parties are in agreement that the petitioner’s basis for the notes was $133,849.44. The unpaid interest which accrued on that…
2Cases cited4 opinions
- Bull v. United StatesSupreme Court of the United States · 1935
- Helvering v. SmithCourt of Appeals for the Second Circuit · 1937
- Karsch v. CommissionerUnited States Tax Court · 1947
- Doyle v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1939
3Cited by35 opinions
- Towers v. CommissionerUnited States Tax Court · 1955
- Stanton v. CommissionerUnited States Tax Court · 1960
- Sanders v. CommissionerUnited States Tax Court · 1954
- Simon Jaglom and Marie Jaglom v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1962
- United States v. SnowCourt of Appeals for the Ninth Circuit · 1955
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