General American Life Ins. Co. v. Commissioner
United States Tax Court
Held, royalties from oil and gas leases received by petitioner life insurance company did not constitute "rents" within the meaning of section 201 (c) (1). Held, further, penalty payments received by petitioner from mortgagors who prepaid their mortgage indebtedness constituted "interest" within the meaning of section 201 (c) (1).
1Opinion of the Court
OPINION.
Rice, Judge:
This proceeding involves the following deficiencies in income tax determined by the respondent under the provisions of the 1939 Code:
Income tas Tear deficiency
1949_$1,951.48
1950_ 3,11459
1951_ 5,203.77
The sole issue is whether royalties from oil and gas leases and penalties received from mortgage debtors, who prepaid their loans, constitute “rents” and “interest,” respectively, within the meaning of section 201 (c) (1) óf the 1939 Code.1
All of the facts were stipulated, are so found, and are incorporated herein by this reference.
Petitioner is a Missouri corporation engaged…
2Cases cited5 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- Ellis Campbell, Jr., Director of Internal Revenue for the Second Collection District of Texas v. Great National Life Insurance CompanyCourt of Appeals for the Second Circuit · 1955
- Bond Auto Loan Corp. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1946
- Pan-American Life Ins. Co. v. CommissionerUnited States Tax Court · 1955
3Cited by18 opinions
- Union Pacific Railroad v. United StatesUnited States Court of Claims · 1975
- Equitable Life Assurance Soc. of US v. United StatesUnited States Court of Claims · 1960
- Lewis v. CommissionerUnited States Tax Court · 1975
- Western Credit Co. v. CommissionerUnited States Tax Court · 1962
- 320 E. 47th Street Corp. v. CommissionerUnited States Tax Court · 1956
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