Bush Terminal Bldgs. Co. v. Commissioner
United States Tax Court
1. In 1940 petitioner purchased a considerable amount of its own bonds at less than their face value. Held, amendment of section 22 (b) (9) of Revenue Act of 1939 made by Revenue Act of 1942 is not retroactive; held, further, the evidence does not establish that petitioner was "in an unsound financial condition" in 1940, and therefore gain resulting from the discharge of an indebtedness by purchase of its bonds is taxable to petitioner.
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1. In 1940 petitioner purchased a considerable amount of its own bonds at less than their face value. Held, amendment of section 22 (b) (9) of Revenue Act of 1939 made by Revenue Act of 1942 is not retroactive; held, further, the evidence does not establish that petitioner was "in an unsound financial condition" in 1940, and therefore gain resulting from the discharge of an indebtedness by purchase of its bonds is taxable to petitioner. Twin City Rapid Transit Co., 3 T. C. 475. 2. An affiliated corporation owed petitioner an account receivable in the amount of $ 1,614,819.98 as of December…
1Opinion of the Court
Bush Terminal Buildings Company, Petitioner, v. Commissioner of Internal Revenue, Respondent
Bush Terminal Bldgs. Co. v. Commissioner
Docket No. 6806
United States Tax Court
7 T.C. 793; 1946 U.S. Tax Ct. LEXIS 75;
September 20, 1946, Promulgated
Decision will be entered under Rule 50.
1. In 1940 petitioner purchased a considerable amount of its own bonds at less than their face value. Held, amendment of section 22 (b) (9) of Revenue Act of 1939 made by Revenue Act of 1942 is not retroactive; held, further, the evidence does not establish that petitioner was "in an unsound financial condition" in…
2Cases cited5 opinions
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
- McLaughlin v. Pacific Lumber Co.Supreme Court of the United States · 1934
- Bush Terminal Bldgs. Co. v. CommissionerUnited States Tax Court · 1946
- Southeastern Bldg. Corp. v. CommissionerUnited States Tax Court · 1944
- Record Realty Co. v. CommissionerUnited States Tax Court · 1946