Annis Furs, Inc. v. Commissioner
United States Tax Court
Petitioner in the year 1939 exchanged its 6 percent debentures due in twenty years from date for its outstanding 6 1/2 percent cumulative preferred stock, which it immediately cancelled and retired. Payment of the debentures was made subordinate to the claims of other creditors but interest thereon was payable semi-annually and was not in any way contingent upon earnings or profits of the corporation.
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Petitioner in the year 1939 exchanged its 6 percent debentures due in twenty years from date for its outstanding 6 1/2 percent cumulative preferred stock, which it immediately cancelled and retired. Payment of the debentures was made subordinate to the claims of other creditors but interest thereon was payable semi-annually and was not in any way contingent upon earnings or profits of the corporation. Held, that the debentures evidenced an indebtedness of petitioner to the holders thereof and petitioner, keeping its books on an accrual system, is entitled to a deduction for the interest which…
1Opinion of the Court
Annis Furs, Inc., a Delaware Corporation v. Commissioner.
Annis Furs, Inc. v. Commissioner
Docket No. 110894.
United States Tax Court
1943 Tax Ct. Memo LEXIS 487; 1 T.C.M. (CCH) 504; T.C.M. (RIA) 43050;
January 28, 1943
Petitioner in the year 1939 exchanged its 6 percent debentures due in twenty years from date for its outstanding 6 1/2 percent cumulative preferred stock, which it immediately cancelled and retired. Payment of the debentures was made subordinate to the claims of other creditors but interest thereon was payable semi-annually and was not in any way contingent upon earnings or profits…
2Cases cited3 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Ticker Publishing Co. v. CommissionerUnited States Board of Tax Appeals · 1942
- Leasehold Realty Co. v. CommissionerUnited States Board of Tax Appeals · 1926