Unitex Industries, Inc. v. Commissioner
United States Tax Court
Where preferred stock of the taxpayer-corporation was purchased from it in installments, the stock certificates not being issued until receipt from the subscribers of the final installments, and the taxpayer made periodic payments to the subscribers with respect to these installments, held, the periodic payments by the taxpayer do not constitute a deductible interest expense under section 23 (b) of the 1939 Code nor do they constitute ordinary and necessary expenses under…
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Where preferred stock of the taxpayer-corporation was purchased from it in installments, the stock certificates not being issued until receipt from the subscribers of the final installments, and the taxpayer made periodic payments to the subscribers with respect to these installments, held, the periodic payments by the taxpayer do not constitute a deductible interest expense under section 23 (b) of the 1939 Code nor do they constitute ordinary and necessary expenses under section 23 (a) (1) (A).
1Opinion of the Court
TeaiN, Judge:
Respondent determined a deficiency in income tax of petitioner for the year 1953 in the amount of $8,164.82. The petition alleged error on the part of respondent with regard to the deficiency determination and, in addition, alleged overpayments of taxes resulting from the overstatement of dividend income in 1953 by the amount of $164,000. It has since been agreed that petitioner overstated its dividend income for 1953 by the alleged amount
The sole issue for determination is whether certain payments in the amount of $32,883.15 by petitioner in the year 1953 constitute a deductible…
2Cases cited8 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- United States v. Title Guarantee & Trust Co.Court of Appeals for the Sixth Circuit · 1943
- United States v. South Georgia Ry. Co.Court of Appeals for the Fifth Circuit · 1939
3 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- In Re the Receivership Estate of Indian Motorcycle Manufacturing, Inc.District Court, D. Massachusetts · 2003
- Dixon v. CommissionerUnited States Tax Court · 1991
- Unitex Industries, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1959
- Raleigh Properties, Inc. v. CommissionerUnited States Tax Court · 1962
- Unitex Industries, Inc. v. CommissionerUnited States Tax Court · 1958