Clearview Apartment Co. v. Commissioner
United States Tax Court
Petitioner in March 1951 borrowed $ 900,000 from the Metropolitan Life Insurance Company, and used $ 300,000 of the proceeds of the loan to pay the unpaid portion of a prior loan which was due on that date.
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Petitioner in March 1951 borrowed $ 900,000 from the Metropolitan Life Insurance Company, and used $ 300,000 of the proceeds of the loan to pay the unpaid portion of a prior loan which was due on that date. Held, the $ 600,000 additional indebtedness was not incurred by petitioner in good faith for the purposes of its business and was not, therefore, "borrowed capital" within the meaning of section 439 (b) (1) of the Internal Revenue Code of 1939 for the purpose of computing its invested capital and excess profits credit.
1Opinion of the Court
Clearview Apartment Company, Petitioner, v. Commissioner of Internal Revenue, Respondent
Clearview Apartment Co. v. Commissioner
Docket No. 52030
United States Tax Court
25 T.C. 246; 1955 U.S. Tax Ct. LEXIS 50;
November 4, 1955, Filed
Decision will be entered under Rule 50.
Petitioner in March 1951 borrowed $ 900,000 from the Metropolitan Life Insurance Company, and used $ 300,000 of the proceeds of the loan to pay the unpaid portion of a prior loan which was due on that date. Held, the $ 600,000 additional indebtedness was not incurred by petitioner in good faith for the purposes of its business…
2Cases cited3 opinions
- Hart-Bartlett-Sturtevant Grain Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1950
- Mahoney Motor Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1951
- Clearview Apartment Co. v. CommissionerUnited States Tax Court · 1955