Leasehold Realty Co. v. Commissioner
United States Board of Tax Appeals
Certain instruments denominated preferred stock issued by the taxpayer corporation, under their terms and conditions, held to be preferred stock and not evidence of indebtedness.
1Opinion of the Court
*1131OPINION.
Love:
The sole question at issue is whether the document quoted in the findings of fact is a stock certificate or an evidence of indebtedness, resulting in the question whether or not the so-called dividends were, in fact, dividends on stock or interest on an indebtedness.
It will be noted that the certificate in question (1) represents a part of the authorized capital stock of the corporation; (2) it is issued, in the ordinary form of a preferred stock certificate; (3) it provides for quarterly dividends, such dividends to be cumulative; (4) it is not secured by mortgage or otherwise…
2Cases cited4 opinions
- Warren v. KingSupreme Court of the United States · 1883
- Spencer v. SmithCourt of Appeals for the Eighth Circuit · 1912
- Armstrong v. Union Trust & Savings BankCourt of Appeals for the Ninth Circuit · 1918
- Grover v. CavanaghIndiana Court of Appeals · 1907
3Cited by3 opinions
- O. P. P. Holding Corp. v. CommissionerUnited States Board of Tax Appeals · 1934
- Annis Furs, Inc. v. CommissionerUnited States Tax Court · 1943
- Leasehold Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1926