Shattuck v. Commissioner
United States Tax Court
Petitioner, in 1950, sold to the issuing corporation 364 five per cent interest bonds having a face value of $ 100 each for $ 150 flat per bond. They were issued to petitioner as of June 2, 1938, and were due June 2, 1958. Unpaid interest which had accumulated since June 2, 1938, after petitioner's acquisition amounted to $ 57.50 per bond. The total face value of the bonds amounted to $ 36,400. Petitioner's basis was $ 17,161.50. Petitioner received $ 54,600 for the bonds.
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Petitioner, in 1950, sold to the issuing corporation 364 five per cent interest bonds having a face value of $ 100 each for $ 150 flat per bond. They were issued to petitioner as of June 2, 1938, and were due June 2, 1958. Unpaid interest which had accumulated since June 2, 1938, after petitioner's acquisition amounted to $ 57.50 per bond. The total face value of the bonds amounted to $ 36,400. Petitioner's basis was $ 17,161.50. Petitioner received $ 54,600 for the bonds. Petitioner reported as long-term capital gain, $ 37,438.50, the difference between his basis and the total sum received.…
1Opinion of the Court
OPINION.
Harron, Judge:
The issue is whether part of the payments received by petitioner for his 5 per cent bonds from Marblehead, the issuing corporation, represents realization of accrued interest, rather than a return of capital.
As the Court analyzes the issue, there is a preliminary question, whether the transaction involved a purchase and sale, or redemption of the bonds. The parties appear to have passed over this point in a superficial way. Clarification of the matter will remove an element of ambiguity which we think must be present otherwise.
The indenture under which the 5 per cent…
2Cases cited10 opinions
- Fisher v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1954
- Commissioner of Internal Revenue v. CaulkinsCourt of Appeals for the Sixth Circuit · 1944
- McClain v. CommissionerSupreme Court of the United States · 1941
- Caulkins v. CommissionerUnited States Tax Court · 1943
- Fisher v. CommissionerUnited States Tax Court · 1952
5 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Harry Rosen and Rose Rosen v. United StatesCourt of Appeals for the Third Circuit · 1961
- Simon Jaglom and Marie Jaglom v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1962
- Jaglom v. CommissionerUnited States Tax Court · 1961
- Central Bldg. & Loan Asso. v. CommissionerUnited States Tax Court · 1960
- Tobey v. CommissionerUnited States Tax Court · 1956
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