De Woskin v. Commissioner
United States Tax Court
Petitioner entered into a transaction purporting to purchase $ 2 million face amount of United States Treasury notes. He claims deductions for interest paid and for expenses incurred in this transaction. Petitioner assigned the notes to a beneficiary as a charitable contribution subject to liens thereon in excess of his basis.
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Petitioner entered into a transaction purporting to purchase $ 2 million face amount of United States Treasury notes. He claims deductions for interest paid and for expenses incurred in this transaction. Petitioner assigned the notes to a beneficiary as a charitable contribution subject to liens thereon in excess of his basis. On sale of the notes the beneficiary received $ 753.45. Held: The purported purchase was lacking in substance; therefore, 1. Amounts paid as interest were not deductible, following Eli D. Goodstein, 30 T.C. 1178. 2. Expenses incurred therein are not deductible. 3. The…
1Opinion of the Court
OPINION.
Tietjens, Judge:
The respondent determined a deficiency in income tax of $52,158.75 for the taxable year 1953. The issues presented are: (1) Whether the petitioner is entitled to the interest deduction claimed in 1958; (2) whether if the interest deduction is disallowed the petitioner is entitled to a deduction for net “out-of-pocket” expense incurred in the transaction; (3) whether if the interest deduction is allowed, the petitioner realized taxable income due to the acceptance by Camp Hale Alumni Association of the United States Treasury notes subject to a liability in excess of…
2Cases cited12 opinions
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Eli D. Goodstein v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Eli D. GoodsteinCourt of Appeals for the First Circuit · 1959
- Goodstein v. CommissionerUnited States Tax Court · 1958
- Lynch v. CommissionerUnited States Tax Court · 1959
- Lynch v. CommissionerCourt of Appeals for the Second Circuit · 1959
7 more not listed; retrieve them via the Exa API.
3Cited by40 opinions
- Hager v. CommissionerUnited States Tax Court · 1981
- United States Freight Company and Subsidiaries v. The United StatesUnited States Court of Claims · 1970
- Leslie H. Jockmus and Esther N. Jockmus v. United StatesCourt of Appeals for the Second Circuit · 1964
- Barnett v. CommissionerUnited States Tax Court · 1965
- Charles B. Benenson and Dorothy Cullman v. United StatesCourt of Appeals for the Second Circuit · 1967
35 more not listed; retrieve them via the Exa API.