Bernstein v. Commissioner
United States Tax Court
Bonds on which interest had accrued but remained unpaid were exchanged in 1949, pursuant to a plan of reorganization, for new bonds of equal face amount, plus capital stock, "non-interest bearing interest certificates," and cash.
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Bonds on which interest had accrued but remained unpaid were exchanged in 1949, pursuant to a plan of reorganization, for new bonds of equal face amount, plus capital stock, "non-interest bearing interest certificates," and cash. Held: 1. The receipt of the cash and interest certificates did not constitute the receipt of interest income. 2. The interest certificates were "securities" within the meaning of section 112 (b) (3) of the Internal Revenue Code of 1939 and were not "other property or money" under section 112 (c) (1).
1Opinion of the Court
OPINION.
Baar, Judge:
The Commissioner determined a deficiency in income tax of William Bernstein and his wife, Selma Bernstein, for the year 1949 in the amount of $103.84 with respect to items not here involved. No error has been alleged except the failure of the Commissioner to exclude from income certain interest which was reported as taxable. The petitioners contend that they are entitled to a refund of approximately $4,500 on this ground.
William Bernstein died subsequent to the filing of the petition herein, and by order of this Court dated May 6, 1953, the executor of his estate, Edward…
2Cases cited3 opinions
- Camp Wolters Enterprises, Inc. v. CommissionerUnited States Tax Court · 1954
- Globe-News Publishing Co. v. CommissionerUnited States Tax Court · 1944
- Commissioner of Internal Revenue v. Carman. Carman v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1951
3Cited by4 opinions
- United Gas Improv. Co. v. CommissionerUnited States Tax Court · 1955
- Bernstein v. CommissionerUnited States Tax Court · 1954
- Bessemer Limestone & Cement Co. v. CommissionerUnited States Tax Court · 1956
- United Gas Improv. Co. v. CommissionerUnited States Tax Court · 1955