Deerland Turpentine Co. v. Commissioner
United States Board of Tax Appeals
1. A South Dakota corporation may legally accept promissory notes worth par in payment for the issuance of its corporate stock. 2. Evidence examined and held insufficient to show that a note received in payment for capital stock was worth par.
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1. A South Dakota corporation may legally accept promissory notes worth par in payment for the issuance of its corporate stock. 2. Evidence examined and held insufficient to show that a note received in payment for capital stock was worth par. Such note excluded in the computation of invested capital. 3. Where a loss was sustained under a contract in 1920, and all the factors necessary to determine the amount were known in that year, although the amount was not computed until 1921, held, that such loss is deductible in 1920, the books being kept upon an accrual basis.
1Opinion of the Court
APPEAL OF DEERLAND TURPENTINE CO.
Deerland Turpentine Co. v. Commissioner
Docket No. 6182.
United States Board of Tax Appeals
4 B.T.A. 1236; 1926 BTA LEXIS 2017;
September 30, 1926, Decided
1. A South Dakota corporation may legally accept promissory notes worth par in payment for the issuance of its corporate stock.
2. Evidence examined and held insufficient to show that a note received in payment for capital stock was worth par. Such note excluded in the computation of invested capital.
3. Where a loss was sustained under a contract in 1920, and all the factors necessary to determine the amount were…
2Cases cited6 opinions
- United States v. AndersonSupreme Court of the United States · 1926
- Schiller Piano Co. v. HydeSouth Dakota Supreme Court · 1917
- Hewitt Rubber Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- American Steel Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Appeal of Ready Auto Supply Co.United States Board of Tax Appeals · 1925
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