Piermont Corp. v. Commissioner
United States Board of Tax Appeals
1. Petitioner refinanced its demand bank loan, contracted prior to January 1, 1934, by issuing debentures in 1934 to its stockholders and using the proceeds of the debentures to pay off the bank. During the taxable year, by appropriate resolutions, property worth $50,000 was set aside to retire the debentures.
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1. Petitioner refinanced its demand bank loan, contracted prior to January 1, 1934, by issuing debentures in 1934 to its stockholders and using the proceeds of the debentures to pay off the bank. During the taxable year, by appropriate resolutions, property worth $50,000 was set aside to retire the debentures. Held, petitioner is entitled to deduct the aforesaid sum as an amount used or set aside to retire indebtedness incurred prior to January, 1, 1934, under section 351(b)(2)(B) of the Revenue Act of 1934. Sun Pipe Line Co.,42 B.T.A. 1413, followed. 2. So long as an amount is set aside to…
1Opinion of the Court
PIERMONT CORPORATION, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Piermont Corp. v. Commissioner
Docket No. 100371.
United States Board of Tax Appeals
43 B.T.A. 770; 1941 BTA LEXIS 1449;
February 28, 1941, Promulgated
1. Petitioner refinanced its demand bank loan, contracted prior to January 1, 1934, by issuing debentures in 1934 to its stockholders and using the proceeds of the debentures to pay off the bank. During the taxable year, by appropriate resolutions, property worth $50,000 was set aside to retire the debentures. Held, petitioner is entitled to deduct the aforesaid sum…
2Cases cited2 opinions
- Sun Pipe Line Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- Piermont Corp. v. CommissionerUnited States Board of Tax Appeals · 1941