New McDermott, Inc. v. Commissioner
United States Board of Tax Appeals
Petitioner corporation was organized by a committee of bondholders subsequent to default of interest on the bonds. The bonds had been issued in connection with a mortgage on real property. The real property was conveyed to petitioner, subject to the mortgage securing the bonds, by a corporation which had acquired the property subject to the mortgage at a sheriff's sale. Petitioner keeps its books and files its returns on the accrual basis.
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Petitioner corporation was organized by a committee of bondholders subsequent to default of interest on the bonds. The bonds had been issued in connection with a mortgage on real property. The real property was conveyed to petitioner, subject to the mortgage securing the bonds, by a corporation which had acquired the property subject to the mortgage at a sheriff's sale. Petitioner keeps its books and files its returns on the accrual basis. No interest was paid on the bonds from the time petitioner acquired the property until after the taxable year. In the taxable year petitioner accrued on…
1Opinion of the Court
THE NEW MCDERMOTT, INC., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
New McDermott, Inc. v. Commissioner
Docket No. 99360.
United States Board of Tax Appeals
44 B.T.A. 1035; 1941 BTA LEXIS 1244;
July 17, 1941, Promulgated
Petitioner corporation was organized by a committee of bondholders subsequent to default of interest on the bonds. The bonds had been issued in connection with a mortgage on real property. The real property was conveyed to petitioner, subject to the mortgage securing the bonds, by a corporation which had acquired the property subject to the mortgage at a sheriff's…
2Cases cited1 opinion
- New McDermott, Inc. v. CommissionerUnited States Board of Tax Appeals · 1941