Rickaby v. Commissioner
United States Tax Court
Payments, on account of bonds purchased "flat" in 1942, made by the debtor in the tax years as interest applicable to periods before 1942 and resulting in recoveries in excess of petitioner's basis but less than the face of the bonds, held taxable as capital gains under section 117 (f), I. R. C. 1939.
1Opinion of the Court
OPINION.
Opper, Judge:
When bonds which are making current payments of undefaulted interest are bought and sold, it is frequently, if not ordinarily, the practice to make an adjustment for the interest earned to the date of sale. In that event, the portion of the interest already paid for, is, when subsequently received, not income of any kind to the purchaser. L. A. Thompson Scenic Railway Co., 9 B. T. A. 1203. See Charles T. Fisher, 19 T. C. 384, 387, affd. (C. A. 6) 209 F. 2d 513, certiorari denied 347 U. S. 1014.
In the present situation, however, interest was in default1 when petitioner…
2Cases cited9 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Fisher v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1954
- Fisher v. CommissionerUnited States Tax Court · 1952
- Clyde C. Pierce Corp. v. Commissioner of Internal Rev.Court of Appeals for the Fifth Circuit · 1941
- District Bond Co. v. CommissionerUnited States Tax Court · 1943
4 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Bayou Verret Land Co. v. CommissionerUnited States Tax Court · 1969
- Graham v. CommissionerUnited States Tax Court · 1961
- First Kentucky Company v. GrayDistrict Court, W.D. Kentucky · 1960
- Horst v. United StatesUnited States Court of Claims · 1964
- Bayou Verret Land Co. v. CommissionerUnited States Tax Court · 1969
3 more not listed; retrieve them via the Exa API.