Johnson v. Commissioner
United States Board of Tax Appeals
Petitioner, having placed corporate stock in the names of several sisters, with the stated intention of having the income paid to them, retaining in her own possession the stock certificates endorsed in blank; and thereafter having "borrowed" the proceeds of the redemption of such stock with an agreement that she would pay "interest" thereon in stipulated amounts to the respective sisters during their natural lives, held not to be entitled to deduct such amounts as interest…
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Petitioner, having placed corporate stock in the names of several sisters, with the stated intention of having the income paid to them, retaining in her own possession the stock certificates endorsed in blank; and thereafter having "borrowed" the proceeds of the redemption of such stock with an agreement that she would pay "interest" thereon in stipulated amounts to the respective sisters during their natural lives, held not to be entitled to deduct such amounts as interest paid, there being no true indebtedness within the meaning of the Revenue Act of 1934, section 23(b).
1Opinion of the Court
IRENE W. JOHNSON, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Johnson v. Commissioner
Docket No. 91721.
United States Board of Tax Appeals
39 B.T.A. 702; 1939 BTA LEXIS 992;
April 6, 1939, Promulgated
Petitioner, having placed corporate stock in the names of several sisters, with the stated intention of having the income paid to them, retaining in her own possession the stock certificates endorsed in blank; and thereafter having "borrowed" the proceeds of the redemption of such stock with an agreement that she would pay "interest" thereon in stipulated amounts to the respective…
2Cases cited1 opinion
- Johnson v. CommissionerUnited States Board of Tax Appeals · 1939