United States v. Memorial Corporation

McALLISTER, Circuit Judge.

The Memorial Corporation brought suit in the district court to recover income taxes paid under a deficiency assessment. The district court held that where a syndicate, organized to buy land and erect a building thereon, issued preferred syndicate certificates, and after sale thereof reorganized as a corporation and converted the preferred certificates into bonds, in accordance with the syndicate agreement, the amount paid as commission for the sale of the preferred certificates, remaining unamortized, was deductible in arriving at taxable gain from the sale of the…