Mayflower Inv. Co. v. Commissioner
United States Tax Court
1 Personal Holding Company Income -- Interest or Profit -- Sec. 502 (a). -- The face amount of a note in excess of the sum loaned thereon constituted interest within the meaning of section 502 (a) of the Internal Revenue Code of 1939 and was not a share of the profits on a transaction for which the loan was given. 2. Failure to File Returns -- Reasonable Cause v. Willful Neglect -- Persons Consulted. -- Failure of a corporation to file personal holding company tax returns…
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1 Personal Holding Company Income -- Interest or Profit -- Sec. 502 (a). -- The face amount of a note in excess of the sum loaned thereon constituted interest within the meaning of section 502 (a) of the Internal Revenue Code of 1939 and was not a share of the profits on a transaction for which the loan was given. 2. Failure to File Returns -- Reasonable Cause v. Willful Neglect -- Persons Consulted. -- Failure of a corporation to file personal holding company tax returns for 6 years in reliance upon the advice and actions of its secretary-bookkeeper who discussed profit and loss with an…
1Opinion of the Court
OPINION.
Murdock, Judge:
The first question is whether the $12,300 received in 1950, reported by the petitioner and held by the Commissioner to be interest, was interest and, therefore, personal holding company income within the meaning of section 502 (a), Internal Revenue Code. The petitioner has changed its position since filing its return and now contends that the amount represents, not the price received for the use of its money on a unit of time basis, Elverson Corporation, 40 B. T. A. 615, but its share of the profits of the business deal engaged in by the borrower. The petitioner’s right…
2Cases cited8 opinions
- Southeastern Finance Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
- Southeastern Finance Co. v. CommissionerUnited States Tax Court · 1945
- Tarbox Corp. v. CommissionerUnited States Tax Court · 1946
- R. Simpson & Co. v. CommissionerSupreme Court of the United States · 1944
- Hermax Co. v. CommissionerUnited States Tax Court · 1948
3 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Mayflower Inv. Co. v. CommissionerUnited States Tax Court · 1955