Hoguet Real Estate Corp. v. Commissioner
United States Tax Court
1. Taxpayer corporation's financial structure consisted of stock and so-called debenture bonds, which were held by persons related to each other by blood or marriage. The face amount of the debenture bonds was considerably in excess of the net value of the corporate assets.
Read the full summary
1. Taxpayer corporation's financial structure consisted of stock and so-called debenture bonds, which were held by persons related to each other by blood or marriage. The face amount of the debenture bonds was considerably in excess of the net value of the corporate assets. Held, on the entire record, that the debenture bonds represented equity capital rather than an indebtedness, and so-called "interest" payable thereon was not deductible in computing its net income. 2. So-called advances by taxpayer corporation to a wholly owned subsidiary held, on the facts of this case, to represent…
1Opinion of the Court
The respondent determined the following deficiencies in income tax of the petitioner:
Tear Deficiencies
1950 -$6, 779. 36
1951 - 5,140.49
1952 - 6,487.12
Petitioner claims an overpayment in income tax for the year 1950 in the amount of $2,755.06. Respondent concedes that petitioner is entitled in 1952 to a net operating loss carryback deduction from 1953 in the amount of $3,786.91.
The issues are:(1) Whether 6 per cent 20-year debenture bonds in the amount of $600,000 issued by petitioner represent a genuine indebtedness so that interest accrued thereon is deductible under section 23 (b) of the…
2Cases cited6 opinions
- Schnitzer v. CommissionerUnited States Tax Court · 1949
- Dobkin v. CommissionerUnited States Tax Court · 1950
- 1432 Broadway Corp. v. Commissioner of Internal Rev.Court of Appeals for the Second Circuit · 1947
- American Cigar Co. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1933
- Wetterau Grocer Co., Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1950
1 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- P. M. Finance Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1962
- 2554-58 Creston Corp. v. CommissionerUnited States Tax Court · 1963
- Burr Oaks Corp. v. CommissionerUnited States Tax Court · 1965
- Gokey Properties, Inc. v. CommissionerUnited States Tax Court · 1960
- Ravano v. CommissionerUnited States Tax Court · 1967
22 more not listed; retrieve them via the Exa API.