Bank of California, Nat'l Asso. v. Commissioner
United States Board of Tax Appeals
The evidence establishes that the transactions in question were purchases by taxpayer of tax-free securities as short-term investments and not loans with the securities as collateral, notwithstanding the fact that repurchase agreements were entered into at the time the securities were purchased by taxpayer.
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The evidence establishes that the transactions in question were purchases by taxpayer of tax-free securities as short-term investments and not loans with the securities as collateral, notwithstanding the fact that repurchase agreements were entered into at the time the securities were purchased by taxpayer. Accordingly, the coupon interest paid on such securities was properly received by taxpayer and taxpayer is exempt from tax on the same under section 22(b)(4) of the Revenue Act of 1928.
1Opinion of the Court
OPINION.
Van Fossan:
These proceedings were brought to redetermine deficiencies in the income taxes of the petitioner for the years 1928 and 1929 in the sums of $2,439.76 and $1,620.62, respectively.
The petitioner alleges that the respondent erred in including in its taxable income interest aggregating $20,331.40 and $14,731.98 accrued to the petitioner on tax-exempt securities during the years 1928 and 1929, respectively. .
The petitioner is a national banking association, organized and existing under the National Bank Act of the United States, with its principal banking office in San…
2Cases cited1 opinion
- First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1930
3Cited by8 opinions
- American National Bank of Austin v. United StatesCourt of Appeals for the Fifth Circuit · 1970
- Citizens National Bank of Waco v. United StatesUnited States Court of Claims · 1977
- Commissioner of Internal Rev. v. BANK OF CALIFORNIA, ETC.Court of Appeals for the Ninth Circuit · 1935
- Massman Construction Co. v. Director of RevenueSupreme Court of Missouri · 1989
- Union Planters National Bank v. United StatesDistrict Court, W.D. Tennessee · 1968
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