McNutt-Boyce Co. v. Commissioner
United States Tax Court
During the calendar year 1958 petitioner realized gross income of $ 79,824.53, accrued and paid interest charges in carrying on its business of $ 49,656.28, accrued and paid other deductions totaling $ 1,135.50, and as a result had a net taxable income of $ 29,032.75. Notwithstanding section 163, I.R.C. 1954, held, the interest is a deduction "allowable under section 162 (relating to trade or business expenses)" as that phrase is used in section 542(c)(9), I.R.C. 1954, and…
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During the calendar year 1958 petitioner realized gross income of $ 79,824.53, accrued and paid interest charges in carrying on its business of $ 49,656.28, accrued and paid other deductions totaling $ 1,135.50, and as a result had a net taxable income of $ 29,032.75. Notwithstanding section 163, I.R.C. 1954, held, the interest is a deduction "allowable under section 162 (relating to trade or business expenses)" as that phrase is used in section 542(c)(9), I.R.C. 1954, and being more than 15 percent of the gross income, petitioner comes within the "exceptions" to the term "personal holding…
1Opinion of the Court
OPINION.
Arundell, Judge:
Respondent determined a deficiency in personal holding company tax for the calendar year 1958 in the amount of $16,320.36.
The sole issue in controversy, and the only matter for determination, is whether the interest of $49,656.28 accrued and paid by petitioner in 1958 to the Fidelity National Bank of Baton Rouge, Louisiana, is a deduction allowable to petitioner under section 162 of the Internal Revenue Code of 1954, as amended, for the purpose of section 542(c) (9) of that Code. Without prejudice to either party as to this issue, it is hereby agreed that in all other…
2Cases cited18 opinions
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