Miller v. Commissioner
United States Tax Court
M, a partnership, borrowed money to purchase controlling interest in the stock of B, a bank. Petitioner, a partner in M and president of B, deducted his proportionate share of the interest incurred by M on the loan used to purchase B's stock. Held: The bank stock was purchased and held with a substantial investment intent.
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M, a partnership, borrowed money to purchase controlling interest in the stock of B, a bank. Petitioner, a partner in M and president of B, deducted his proportionate share of the interest incurred by M on the loan used to purchase B's stock. Held: The bank stock was purchased and held with a substantial investment intent. The stock therefore constitutes "property held for investment" and the interest on the loan obtained to purchase this stock is an "investment interest expense" as defined in sec. 57(b)(2)(D) for purposes of the minimum tax imposed by sec. 56.
1Opinion of the Court
Wilbur, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax for 1970 in the amount of $4,999. The sole issue for decision is whether an interest expense, incurred on a loan obtained to purchase controlling interest in the common stock of a bank, constituted an “investment interest expense” as defined in section 57(b)(2)(D), for purposes of the minimum tax imposed by section 56.1
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
The petitioners, Harris M. and Phyllis Miller, resided in Shawnee Mission, Kans., at the time they filed the…
2Cases cited13 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- F. W. Woolworth Co. v. CommissionerUnited States Tax Court · 1970
- W. W. Windle Company v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1977
- W. W. Windle Co. v. CommissionerUnited States Tax Court · 1976
- Podell v. CommissionerUnited States Tax Court · 1970
8 more not listed; retrieve them via the Exa API.
3Cited by52 opinions
- Brannen v. CommissionerUnited States Tax Court · 1982
- Recklitis v. CommissionerUnited States Tax Court · 1988
- Goodwin v. CommissionerUnited States Tax Court · 1980
- King v. CommissionerUnited States Tax Court · 1987
- Estate of Yaeger v. CommissionerCourt of Appeals for the Second Circuit · 1989
47 more not listed; retrieve them via the Exa API.