Moughon v. Commissioner
United States Tax Court
Held, that certain instruments denominated "debentures" issued by the corporate petitioner to the individual petitioners, in proportion to their stock holdings, in exchange for the goodwill and other intangible assets of a partnership business did not represent "indebtedness" within the meaning of section 163(a) of the Internal Revenue Code of 1954, that the corporation is not entitled to deductions of purported "interest" thereon, and that amounts paid to the individual…
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Held, that certain instruments denominated "debentures" issued by the corporate petitioner to the individual petitioners, in proportion to their stock holdings, in exchange for the goodwill and other intangible assets of a partnership business did not represent "indebtedness" within the meaning of section 163(a) of the Internal Revenue Code of 1954, that the corporation is not entitled to deductions of purported "interest" thereon, and that amounts paid to the individual petitioners upon the retirement of some of such instruments constituted taxable dividends to them.
1Opinion of the Court
Morris Moughon and Virginia Moughon v. Commissioner. Martin A. Hayes & Co., Inc. v. Commissioner. Hubert C. Cunningham v. Commissioner.
Moughon v. Commissioner
Docket Nos. 88838, 88847, 88848.
United States Tax Court
T.C. Memo 1963-25; 1963 Tax Ct. Memo LEXIS 319; 22 T.C.M. (CCH) 94; T.C.M. (RIA) 63025;
January 29, 1963
Held, that certain instruments denominated "debentures" issued by the corporate petitioner to the individual petitioners, in proportion to their stock holdings, in exchange for the goodwill and other intangible assets of a partnership business did not represent "indebtedness" within…
2Cases cited17 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
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