Prudential Ins. Co. v. Commissioner
United States Tax Court
Petitioner, a mutual life insurance company, treated certain prepayment penalties attributable to its post-1954 corporate mortgage loans as long-term capital gain under sec. 1232, I.R.C. 1954, and, in computing its "gross investment income" under sec. 804(b), excluded those prepayment penalties from income described under sec. 804(b)(1)(C). Held, in computing its "gross investment income" under sec. 804(b), petitioner must include the prepayment penalties as income described…
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Petitioner, a mutual life insurance company, treated certain prepayment penalties attributable to its post-1954 corporate mortgage loans as long-term capital gain under sec. 1232, I.R.C. 1954, and, in computing its "gross investment income" under sec. 804(b), excluded those prepayment penalties from income described under sec. 804(b)(1)(C). Held, in computing its "gross investment income" under sec. 804(b), petitioner must include the prepayment penalties as income described under sec. 804(b)(1)(C), in each of the years at issue.
1Opinion of the Court
The Prudential Insurance Company of America, Petitioner v. Commissioner of Internal Revenue, Respondent
Prudential Ins. Co. v. Commissioner
Docket No. 45430-85
United States Tax Court
90 T.C. 36; 1988 U.S. Tax Ct. LEXIS 3; 90 T.C. No. 3;
January 11, 1988; As amended January 12, 1988; Reversed by 1989 U.S. App. LEXIS 12291 January 11, 1988, Filed
Decision will be entered under Rule 155. 17
Petitioner, a mutual life insurance company, treated certain prepayment penalties attributable to its post-1954 corporate mortgage loans as long-term capital gain under sec. 1232, I.R.C. 1954, and, in computing its…
2Cases cited15 opinions
- Morton v. MancariSupreme Court of the United States · 1974
- Hort v. CommissionerSupreme Court of the United States · 1941
- Williams v. McGowanCourt of Appeals for the Second Circuit · 1945
- United States v. Midland-Ross Corp.Supreme Court of the United States · 1965
- Commissioner of Internal Revenue v. CaulkinsCourt of Appeals for the Sixth Circuit · 1944
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