Gokey Properties, Inc. v. Commissioner
United States Tax Court
In 1938 seven owners of Gokey Properties, each of whom possessed a one-eighth interest therein, decided to buy out the owner of the remaining one-eighth interest and to incorporate their real estate holdings. All eight owners transferred their property interests to petitioner corporation.
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In 1938 seven owners of Gokey Properties, each of whom possessed a one-eighth interest therein, decided to buy out the owner of the remaining one-eighth interest and to incorporate their real estate holdings. All eight owners transferred their property interests to petitioner corporation. In exchange therefor petitioner issued an aggregate of 140 shares of common stock without par value and unsecured registered gold bonds with a total face value of $ 400,000. Each of the seven continuing owners received 20 shares of common stock and a $ 50,000 registered gold bond. The other $ 50,000 bond was…
1Opinion of the Court
Bruce, Judge:
This proceeding involves deficiencies in income tax of the petitioner for the years and in the amounts as follows:
Year Deficiency
1952 _$8,394.86
1953 _ 8,190.70
1954 _ 7,546.00
The sole issue for decision is whether certain registered gold bonds issued by petitioner in 1938 constitute a genuine indebtedness, so that payments thereon are deductible as interest.
FINDINGS OF FACT.
The stipulated facts are so found and are incorporated herein by this reference.
The petitioner, a New York corporation with its principal office at 98 Westminster Drive, Jamestown, New York, was incorporated…
2Cases cited8 opinions
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Gooding Amusement Co. v. CommissionerUnited States Tax Court · 1954
- Commissioner of Int. Rev. v. Meridian & Thirteenth R. Co.Court of Appeals for the Seventh Circuit · 1942
- 1432 Broadway Corp. v. Commissioner of Internal Rev.Court of Appeals for the Second Circuit · 1947
3 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Gokey Properties, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1961
- Barclay Co. v. CommissionerUnited States Tax Court · 1964
- Continental Grain Co. v. CommissionerUnited States Tax Court · 1988
- Davidson Bldg. Co. v. CommissionerUnited States Tax Court · 1961
- Gokey Properties, Inc. v. CommissionerUnited States Tax Court · 1960
1 more not listed; retrieve them via the Exa API.