Southern Cailfornia Edison Co. v. Commissioner
United States Tax Court
1. Prior to November 9, 1935, the effective date of Treasury Decision 4603, petitioner retired three issues of bonds with the proceeds from the sale of new bonds. The premium, retirement expense, and unamortized discount on two of the issues were deducted in the year of retirement. Held, the election permissible under T. D. 4603 to prorate such items over the life of the new bonds applies to each separate issue retired prior to November 9, 1935, in a year then open.
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1. Prior to November 9, 1935, the effective date of Treasury Decision 4603, petitioner retired three issues of bonds with the proceeds from the sale of new bonds. The premium, retirement expense, and unamortized discount on two of the issues were deducted in the year of retirement. Held, the election permissible under T. D. 4603 to prorate such items over the life of the new bonds applies to each separate issue retired prior to November 9, 1935, in a year then open. The failure to make an election on the retirement of the two issues did not bar an election on the third bond issue. 2. When the…
1Opinion of the Court
OPINION.
Hill, Judge:
The issues in this case turn on the proper interpretation of paragraph (a) of Treasury Decision 4603, approved November 9,1935, XIY-2 C. B. 58 (1935), which reads as follows:
In determining the deductions for income tax purposés of items in respect of the refunding of bonds, the following rules shall apply in the instances specified:(a) In the case of a retirement of an issue of old bonds from the proceeds of the sale of new bonds any amount paid in excess of the face value of the old bonds, less any amount of premium received when issued and not already returned as income,…
2Cases cited2 opinions
- Bell County v. LightfootTexas Supreme Court · 1911
- Pyle v. ClarkU.S. Circuit Court for the District of Utah · 1896
3Cited by5 opinions
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- South Carolina Continental Telephone Co. v. CommissionerUnited States Tax Court · 1948
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- South Carolina Continental Tel. Co. v. CommissionerUnited States Tax Court · 1948
- Southern Cailfornia Edison Co. v. CommissionerUnited States Tax Court · 1944