Driscoll v. Commissioner
United States Tax Court
Three petitioners jointly purchased a noncoupon, nonregistered corporate note late in 1953. On February 28, 1955, three new notes were substituted for the original note. Each new note was payable to an individual petitioner in a face amount equal to one-third of the principal of the old note.
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Three petitioners jointly purchased a noncoupon, nonregistered corporate note late in 1953. On February 28, 1955, three new notes were substituted for the original note. Each new note was payable to an individual petitioner in a face amount equal to one-third of the principal of the old note. The new notes were retired by payments made in 1955 and 1956. Held, the retirement of the notes was not an exchange within section 1232(a)(1), I.R.C. 1954, and petitioners are not entitled to capital gains treatment of the amounts received.
1Opinion of the Court
Mulkoney, Judge:
The respondent determined deficiencies in petitioners’ income tax as follows:
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The question for decision is whether amounts received in April 1955 and December 1956 in retirement of notes qualify for treatment as amounts received in exchange for said notes under section 1232(a) (1) of the Internal Revenue Code of 1954.
FINDINGS OF FACT.
Some of the facts have been stipulated and they are found accordingly.
Petitioners J. Francis Driscoll, Jr., and Ann K. Driscoll, Arthur Edelstein and Marian L. Edelstein, and Lawrence I. Cohen and Myra L. Cohen are husbands and wives…
2Cases cited6 opinions
- Fairbanks v. United StatesSupreme Court of the United States · 1939
- Lurie v. CommissionerUnited States Tax Court · 1945
- Miller v. CommissionerUnited States Tax Court · 1959
- Oestreicher v. CommissionerUnited States Tax Court · 1953
- Lurie v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1946
1 more not listed; retrieve them via the Exa API.
3Cited by4 opinions
- Luke v. CommissionerUnited States Tax Court · 1964
- Driscoll v. CommissionerCourt of Appeals for the Seventh Circuit · 1962
- J. Francis Driscoll, Jr., and Ann K. Driscoll v. Commissioner of Internal Revenue, Arthur Edelstein and Marian Edelstein v. Commissioner of Internal Revenue, Lawrence I. Cohen and Myra L. Cohen v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1962
- Driscoll v. CommissionerUnited States Tax Court · 1961