F. D. Bissett & Son, Inc. v. Commissioner
United States Tax Court
Petitioner deducted $ 5,500 in interest accrued in connection with certain of its debentures in each of the taxable years 1965, 1966, and 1967. Respondent, in reliance upon sec. 267(a)(2), disallowed these claimed interest deductions to the extent of $ 4,100 in 1965, $ 5,500 in 1966, and $ 3,100 in 1967. Held: On the facts, the interest income was constructively received by the respective debenture holders within the statutory period set out in sec. 267(a)(2)(A). Therefore,…
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Petitioner deducted $ 5,500 in interest accrued in connection with certain of its debentures in each of the taxable years 1965, 1966, and 1967. Respondent, in reliance upon sec. 267(a)(2), disallowed these claimed interest deductions to the extent of $ 4,100 in 1965, $ 5,500 in 1966, and $ 3,100 in 1967. Held: On the facts, the interest income was constructively received by the respective debenture holders within the statutory period set out in sec. 267(a)(2)(A). Therefore, sec. 267(a)(2) does not apply so as to disallow claimed interest deductions.
1Opinion of the Court
Irwin, Judge:
The Commissioner determined deficiencies in petitioner’s income tax as follows:
Taxable year Deficiency
1965 _ $1, 319. 27
1966 _ 2,159. 02
1967 _ 1, 488. 00
The issue for our determination is whether section 267(a)(2)1 operates so as to disallow deductions for accrued interest, otherwise allowable under section 163, in the amounts of $1,100 2 in 1965, $5,500 in 1966, and $3,100 in 1967.
FINDINGS OF FACT
The parties stipulated some facts which together with the exhibits attached thereto are incorporated herein by this reference.
F. D. Bissett & Son, Inc. (hereinafter petitioner), which…
2Cases cited16 opinions
- Avery v. CommissionerSupreme Court of the United States · 1934
- Helvering v. Midland Mutual Life InsuranceSupreme Court of the United States · 1937
- Ross v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1948
- Acer Realty Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1942
- Michael Flynn Mfg. Co. v. CommissionerUnited States Tax Court · 1944
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