Hewitt Rubber Co. v. Commissioner
United States Board of Tax Appeals
An interest-bearing demand promissory note of a responsible and solvent maker actually and in good faith paid in for stock of a New York corporation, constitutes invested capital, to the extent of its actual cash value at the time paid in, within the meaning of section 326(a)(2) of the Revenue Act of 1918, notwithstanding the provision of section 29 of the New York Stock Corporation Law, that a note may not be received in payment of any installment, or any part thereof, due…
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An interest-bearing demand promissory note of a responsible and solvent maker actually and in good faith paid in for stock of a New York corporation, constitutes invested capital, to the extent of its actual cash value at the time paid in, within the meaning of section 326(a)(2) of the Revenue Act of 1918, notwithstanding the provision of section 29 of the New York Stock Corporation Law, that a note may not be received in payment of any installment, or any part thereof, due or to become due on any stock of such corporation, without personal liability of the officers or directors of the…
1Opinion of the Court
Appeal of HEWITT RUBBER CO.
Hewitt Rubber Co. v. Commissioner
Docket No. 325.
United States Board of Tax Appeals
1 B.T.A. 424; 1925 BTA LEXIS 2929;
January 29, 1925, decided Submitted December 3, 1924.
An interest-bearing demand promissory note of a responsible and solvent maker actually and in good faith paid in for stock of a New York corporation, constitutes invested capital, to the extent of its actual cash value at the time paid in, within the meaning of section 326(a)(2) of the Revenue Act of 1918, notwithstanding the provision of section 29 of the New York Stock Corporation Law, that a note…
2Cases cited29 opinions
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- New York & Oswego Midland Railroad v. Van HornNew York Court of Appeals · 1874
- Pratt v. . ShortNew York Court of Appeals · 1880
- Washer v. SmyerTexas Supreme Court · 1919
- Magee v. . BadgerNew York Court of Appeals · 1866
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