Southeastern Finance Co. v. Commissioner
United States Tax Court
1. Under certain contracts with dealers in merchandise petitioner received conditional sales contracts and supporting installment notes executed by purchasers of merchandise from the dealers. Under the contracts with the dealers petitioner agreed to pay the dealers 100 percent of the amounts of the unmatured installments and of this 100 percent petitioner agreed to, and did, advance 70 percent less its "charges" when the paper was received and accepted by it.
Read the full summary
1. Under certain contracts with dealers in merchandise petitioner received conditional sales contracts and supporting installment notes executed by purchasers of merchandise from the dealers. Under the contracts with the dealers petitioner agreed to pay the dealers 100 percent of the amounts of the unmatured installments and of this 100 percent petitioner agreed to, and did, advance 70 percent less its "charges" when the paper was received and accepted by it. The remaining 30 percent was to be, and was, paid the dealers only after receipt by the petitioner, in the case of each installment…
1Opinion of the Court
OPINION.
Issue 1.
Tyson, Judge: It is not disputed that petitioner qualifies as a personal holding company for the taxable years insofar as its stock ownership is involved under section 501 (a) of the Internal Revenue Code.1 It is also undisputed that that portion of its gross income derived from “charges” collected on conditional sales contracts and notes received by it from its dealers, if added to the portion of its gross income admittedly derived from interest, meets the gross income percentage requirement of said section if such “charges” constitute interest within the meaning of section…
2Cases cited10 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Helvering v. GriffithsSupreme Court of the United States · 1943
- Home Bond Co. v. McChesneySupreme Court of the United States · 1916
- Helvering v. SprouseSupreme Court of the United States · 1943
- Sponge Exch. Bank v. Commercial Credit Co.Court of Appeals for the Fifth Circuit · 1920
5 more not listed; retrieve them via the Exa API.
3Cited by53 opinions
- Paula Constr. Co. v. CommissionerUnited States Tax Court · 1972
- Duttenhofer v. CommissionerUnited States Tax Court · 1967
- Stevens Bros. Foundation, Inc. v. CommissionerUnited States Tax Court · 1962
- P. Dougherty Co. v. CommissionerUnited States Tax Court · 1945
- P. Dougherty Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1946
48 more not listed; retrieve them via the Exa API.