Legal Opinion

Garrison Co. v. Commissioner

United States Board of Tax Appeals

Decided September 25, 1929No. Docket No. 15006Published

1. Under the Constitution of the State of Arkansas a promissory note given to a corporation for its stock is void as between the maker and the corporation, and, notwithstanding the solvency of the maker of the note and his ability to pay, no amount may be included in invested capital on account of such note given for stock. 2. Cost of depreciable property acquired for cash determined.

1Opinion of the Court

GARRISON CO., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

Garrison Co. v. Commissioner

Docket No. 15006.

United States Board of Tax Appeals

17 B.T.A. 460; 1929 BTA LEXIS 2290;

September 25, 1929, Promulgated

1. Under the Constitution of the State of Arkansas a promissory note given to a corporation for its stock is void as between the maker and the corporation, and, notwithstanding the solvency of the maker of the note and his ability to pay, no amount may be included in invested capital on account of such note given for stock.

2. Cost of depreciable property acquired for cash…

2Cases cited9 opinions

  1. Bank of Commerce v. GoolsbySupreme Court of Arkansas · 1917
  2. Bank of Manila v. WallaceSupreme Court of Arkansas · 1928
  3. Park v. Bank of LockesburgSupreme Court of Arkansas · 1928
  4. Hewitt Rubber Co. v. CommissionerUnited States Board of Tax Appeals · 1925
  5. American Steel Co. v. CommissionerUnited States Board of Tax Appeals · 1925

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