Gibbons v. Commissioner
United States Tax Court
Held, that fully earned increments on 15-year investment certificates issued by a corporation in registered form -- representing the difference between the issuance prices of the certificates, and the amounts of the maturity values thereof which petitioners realized at the close of the certificates' 15-year periods -- constitute ordinary income. Commissioner v. Morgan, 272 F. 2d 936 (C.A. 9), and Rosen v. United States, 288 F. 2d 658 (C.A. 3), followed.
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Held, that fully earned increments on 15-year investment certificates issued by a corporation in registered form -- representing the difference between the issuance prices of the certificates, and the amounts of the maturity values thereof which petitioners realized at the close of the certificates' 15-year periods -- constitute ordinary income. Commissioner v. Morgan, 272 F. 2d 936 (C.A. 9), and Rosen v. United States, 288 F. 2d 658 (C.A. 3), followed. Prior decision in George Peck Caulkins, 1 T.C. 656, affd. 144 F. 2d 482 (C.A. 6), will no longer be followed.
1Opinion of the Court
OPINION.
PieRce, Judge:
Respondent determined a deficiency in petitioners’ income tax for the calendar year 1955 in the amount of $2,315.50. Petitioners allege that there is an overpayment of said tax, in the amount of $138.46.
The sole issue for decision is: Whether fully earned increments on 15-year investment certificates issued by a corporation in registered form — representing the difference between the issuance prices of the certificates and the amounts of the maturity values thereof that petitioners realized at the close of the certificates’ 15-year periods — constitute capital gains or…
2Cases cited16 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Fairbanks v. United StatesSupreme Court of the United States · 1939
- Fisher v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1954
- Commissioner of Internal Revenue v. CaulkinsCourt of Appeals for the Sixth Circuit · 1944
- Commissioner of Internal Revenue v. J. I. Morgan and Frances MorganCourt of Appeals for the Ninth Circuit · 1959
11 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- United States v. Midland-Ross Corp.Supreme Court of the United States · 1965
- Schwartz v. CommissionerUnited States Tax Court · 1963
- Leavin v. CommissionerUnited States Tax Court · 1962
- Bolnick v. CommissionerUnited States Tax Court · 1965
- Crocker v. CommissionerUnited States Tax Court · 1962
12 more not listed; retrieve them via the Exa API.