Bolnick v. Commissioner
United States Tax Court
1. Gain realized by petitioners on redemption prior to maturity at face amount of debentures issued to petitioners in 1953 at an original issue discount is taxable in part as ordinary income and in part as capital gain, where there was no specific intent on the part of the issuers at the date of issue to redeem the debentures prior to maturity and no understanding between the issuers and petitioners that the bonds would be redeemed prior to maturity. 2. Petitioners are…
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1. Gain realized by petitioners on redemption prior to maturity at face amount of debentures issued to petitioners in 1953 at an original issue discount is taxable in part as ordinary income and in part as capital gain, where there was no specific intent on the part of the issuers at the date of issue to redeem the debentures prior to maturity and no understanding between the issuers and petitioners that the bonds would be redeemed prior to maturity. 2. Petitioners are entitled to have amount claimed on their return as an overpayment taken into consideration in determining a deficiency or…
1Opinion of the Court
Drennen, Judge:
Respondent determined a deficiency in income tax for the taxable year 1954 in the amount of $3,535.89.
There are two issues for decision:(1) Whether gain realized in 1954 by petitioner Ted Bolnick upon the redemption at face value, by the issuers prior to maturity, of debentures issued in registered form by certain corporations to petitioner at an original issue discount in 1953, constitutes long-term capital gain or ordinary income.(2) Whether petitioners are entitled to an overpayment of income tax paid for the taxable year 1954 in the amount of $778.90, which overpayment they…
2Cases cited21 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Dixon v. United StatesSupreme Court of the United States · 1965
- Commissioner v. Gooch Milling & Elevator Co.Supreme Court of the United States · 1944
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
- United States v. Midland-Ross Corp.Supreme Court of the United States · 1965
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3Cited by14 opinions
- Naftel v. CommissionerUnited States Tax Court · 1985
- Logan v. CommissionerUnited States Tax Court · 1986
- Phoenix Mut. Life Ins. Co. v. CommissionerUnited States Tax Court · 1991
- Baral v. CommissionerUnited States Tax Court · 1978
- Bolnick v. CommissionerUnited States Tax Court · 1965
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