Prudential Ins. Co. v. Commissioner
United States Tax Court
Petitioner, a mutual life insurance company, treated certain prepayment penalties attributable to its post-1954 corporate mortgage loans as long-term capital gain under sec. 1232, I.R.C. 1954, and, in computing its "gross investment income" under sec. 804(b), excluded those prepayment penalties from income described under sec. 804(b)(1)(C). Held, in computing its "gross investment income" under sec. 804(b), petitioner must include the prepayment penalties as income described…
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Petitioner, a mutual life insurance company, treated certain prepayment penalties attributable to its post-1954 corporate mortgage loans as long-term capital gain under sec. 1232, I.R.C. 1954, and, in computing its "gross investment income" under sec. 804(b), excluded those prepayment penalties from income described under sec. 804(b)(1)(C). Held, in computing its "gross investment income" under sec. 804(b), petitioner must include the prepayment penalties as income described under sec. 804(b)(1)(C), in each of the years at issue.
1Opinion of the Court
OPINION
STERRETT, Chief Judge:
By notice of deficiency dated September 26, 1985, respondent determined deficiencies of $6,954,469 and $6,910,113 in petitioner’s Federal income taxes for calendar years 1972 and 1973, respectively. After concessions, the only issue for decision is whether petitioner, in computing its gross investment income under section 804(b),1 must include certain prepayment penalties attributable to its post-1954 corporate mortgage loans as income described under section 804(b)(1)(C).2
The parties submitted this case on fully stipulated facts pursuant to Rule 122. The…
2Cases cited13 opinions
- Morton v. MancariSupreme Court of the United States · 1974
- Hort v. CommissionerSupreme Court of the United States · 1941
- Williams v. McGowanCourt of Appeals for the Second Circuit · 1945
- United States v. Midland-Ross Corp.Supreme Court of the United States · 1965
- Commissioner of Internal Revenue v. CaulkinsCourt of Appeals for the Sixth Circuit · 1944
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3Cited by4 opinions
- Travelers Insurance v. United StatesUnited States Court of Claims · 1992
- Phoenix Mut. Life Ins. Co. v. CommissionerUnited States Tax Court · 1991
- Phoenix Mut. Life Ins. Co. v. CommissionerUnited States Tax Court · 1991
- Prudential Ins. Co. v. CommissionerUnited States Tax Court · 1988