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
Richard B. Gibbons and Mary Louise Gibbons, Petitioners, v. Commissioner of Internal Revenue, Respondent
Gibbons v. Commissioner
Docket No. 75124
United States Tax Court
37 T.C. 569; 1961 U.S. Tax Ct. LEXIS 5;
December 27, 1961, Filed
Decision will be entered under Rule 50.
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…
2Cases cited17 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
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