Flint Nortown Theatre Co. v. Commissioner
United States Tax Court
Advances made to a corporation on open account in equal amounts by its two stockholders and not "evidenced by a note, bond, bill of exchange, debenture, certificate of indebtedness, mortgage, or deed of trust," are not "equity invested capital" or "borrowed invested capital" within the meaning of those terms as used in sections 718 and 719 of the Internal Revenue Code, added by section 201 of the Second Revenue Act of 1940.
1Opinion of the Court
OPINION.
Smith, Judge:
This proceeding involves an excess profits tax deficiency for 1941 of $2,586.97. The only error alleged in the petition is that the respondent “did not allow taxpayer credit for borrowed or equity invested capital.”
Petitioner is a corporation organized under the laws of the State of Michigan in 1939. Its principal office is at Flint, Michigan. It filed its income and excess profits tax return for 1941 with the collector of internal revenue for the first district of Michigan.
Petitioner was organized July 20, 1939, for the purpose of building and operating a motion picture…
2Cases cited1 opinion
- Journal Publishing Co. v. CommissionerUnited States Tax Court · 1944
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- Canister Co. v. CommissionerCourt of Appeals for the Third Circuit · 1948
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