Life Insurance Co. of Georgia v. United States

*435This case is before the court on the parties’ cross-motions for partial summary judgment. The controversy at issue is whether interest due in advance and capitalized by an insurance company under the terms of the policyholder loan agreements is includible in plaintiffs gross investment income, I.R.C. § 804(b)(1), in the year of capitalization. Such advance interest was not paid in cash. After consideration of the parties’ briefs and after oral argument, we uphold the determination of the Government, grant its motion, and therefore dismiss the petition to that extent.

Plaintiff is a stock life…