Mercil v. Commissioner
United States Tax Court
Petitioner's father in substantial part financed petitioner's college and medical education. Approximately 20 years later, petitioner's father, who was then retired, fractured his hip and incurred a $ 560 hospital bill. Petitioner, who was then and for approximately 17 years had been a practicing physician, paid the hospital bill of $ 560 and, beginning some 2 months later, thereafter paid his father $ 100 per month.
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Petitioner's father in substantial part financed petitioner's college and medical education. Approximately 20 years later, petitioner's father, who was then retired, fractured his hip and incurred a $ 560 hospital bill. Petitioner, who was then and for approximately 17 years had been a practicing physician, paid the hospital bill of $ 560 and, beginning some 2 months later, thereafter paid his father $ 100 per month. Held, that petitioner, by his proof, has not overcome the presumption that the money advanced for his college and medical education was a gift or advancement. Held, further, that…
1Opinion of the Court
OPINION.
Turner, Judge:
The only question for decision is whether or not the monthly payments of $100 each made by petitioner to his father in 1946 were payments of interest within the meaning of section 23 (b) of the Internal Kevenue Code of 1939. By that section, it is provided that in computing net income, there shall be allowed as deductions “all interest paid or accrued within the taxable year on indebtedness.” It is thus apparent that the existence of an indebtedness upon which interest is paid or accrued is the sine qua non of the deduction claimed.
Essential to the existence of an…
2Cases cited14 opinions
- Autenreith v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1940
- Clark v. CommissionerUnited States Tax Court · 1952
- Bercaw v. CommissionerCourt of Appeals for the Fourth Circuit · 1948
- Gilman v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1931
- Bankers Trust Co. v. Bank of Rockville Center Trust Co.Supreme Court of New Jersey · 1933
9 more not listed; retrieve them via the Exa API.
3Cited by35 opinions
- Estate of Reynolds v. CommissionerUnited States Tax Court · 1970
- Rude v. CommissionerUnited States Tax Court · 1967
- Taylor v. CommissionerUnited States Tax Court · 1956
- Estate of Labombarde v. CommissionerUnited States Tax Court · 1972
- Todd v. CommissionerUnited States Tax Court · 1969
30 more not listed; retrieve them via the Exa API.