Ames Trust & Sav. Bank v. Commissioner
United States Tax Court
Outstanding obligations evidenced by "certificates of deposit" issued by petitioner bank, not subject to check, bearing interest, and payable only at maturities of 6 months and 1 year, held includible in borrowed capital under section 719, Internal Revenue Code, for purposes of computing petitioner's excess profits credit. Economy Savings & Loan Co., 5 T.C. 543.
1Opinion of the Court
OPINION.
OppeR, Judge-.
That the instruments in controversy were certificates of indebtedness within the meaning of section 719, Internal Revenue Code,1 follows from the holding in Economy Savings & Loan Co., 5 T. C. 543, reviewed other issues (C. C. A., 6th Cir.), 158 Fed. (2d) 472. That case, as this, involved a certificate of deposit, and respondent relied upon the definition contained in Regulations 112, sec. 35.719-1:
The term “certificate of indebtedness” includes only instruments having the general character of investment securities issued by a corporation as distinguishable from…
2Cases cited4 opinions
- Economy Sav. & Loan Co. v. CommissionerUnited States Tax Court · 1945
- West Constr. Co. v. CommissionerUnited States Tax Court · 1946
- Brann & Stuart Co. v. CommissionerUnited States Tax Court · 1947
- Kellogg Com. Co. v. CommissionerUnited States Tax Court · 1949
3Cited by21 opinions
- Commissioner of Internal Revenue v. Ames Trust & Sav. BankCourt of Appeals for the Eighth Circuit · 1950
- Capital Nat'l Bank v. CommissionerUnited States Tax Court · 1951
- National Bank of Commerce v. CommissionerUnited States Tax Court · 1951
- Valley Morris Plan v. CommissionerUnited States Tax Court · 1959
- Hunt Foods, Inc. v. CommissionerUnited States Tax Court · 1951
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