South Carolina Continental Telephone Co. v. Commissioner

OPINION.

Tyson, Judge:

The first assignment of error presents the only remaining issue for our redetermination. The parties are in agreement as to the principles of law applicable to that issue, viz., that, generally, where an outstanding issue of bonds is retired for cash, even though the cash is obtained by the sale of a new issue of bonds, the premium paid upon the retirement and the unamortized discount and expenses of the old bonds are deductible in the year of retirement,1 but that where an outstanding issue of bonds is retired by an exchange Or substitution of old bonds for new, those…