Idaho Lumber & Hardware Co. v. Commissioner
United States Tax Court
Petitioner issued securities, called "debenture stock", in which it acknowledged itself indebted to the holder for the repayment of the principal at a definite due date, with interest at 8 per cent, payable semi-annually, containing the option to defer interest payments for four years, if petitioner's cash position should so require, but not waiving the interest, the securities being subordinate to creditors but superior to holders of common stock, the only stock issuable…
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Petitioner issued securities, called "debenture stock", in which it acknowledged itself indebted to the holder for the repayment of the principal at a definite due date, with interest at 8 per cent, payable semi-annually, containing the option to defer interest payments for four years, if petitioner's cash position should so require, but not waiving the interest, the securities being subordinate to creditors but superior to holders of common stock, the only stock issuable under petitioner's articles of incorporation. Held, the debenture stock certificates are evidence of indebtedness and…
1Opinion of the Court
Idaho Lumber & Hardware Company, a corporation, v. Commissioner.
Idaho Lumber & Hardware Co. v. Commissioner
Docket No. 4792.
United States Tax Court
1945 Tax Ct. Memo LEXIS 277; 4 T.C.M. (CCH) 290; T.C.M. (RIA) 45085;
March 8, 1945
Petitioner issued securities, called "debenture stock", in which it acknowledged itself indebted to the holder for the repayment of the principal at a definite due date, with interest at 8 per cent, payable semi-annually, containing the option to defer interest payments for four years, if petitioner's cash position should so require, but not waiving the interest, the…
2Cases cited3 opinions
- O. P. P. Holding Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- H. R. De Milt Co. v. CommissionerUnited States Board of Tax Appeals · 1927
- Kentucky River Coal Corp. v. CommissionerUnited States Board of Tax Appeals · 1926