Estate of Melcher v. Commissioner
United States Tax Court
Issue 1: (a) Held, upon the facts: That petitioner, Martn Melcher, did not enter into a bona fide transaction in 1953 for the purchase of $3,000,000 Federal Land Bank bonds; the transaction was without substance; it was a sham; and cannot be recognized for tax purposes; that petitioner did not borrow and was not indebted for $3,156,000; that in reality he did not purchase the bonds; and that the amounts paid by petitioner to Gibraltar in 1953, 1954, 1955, 1956, and 1957 were…
Read the full summary
Issue 1: (a) Held, upon the facts: That petitioner, Martn Melcher, did not enter into a bona fide transaction in 1953 for the purchase of $3,000,000 Federal Land Bank bonds; the transaction was without substance; it was a sham; and cannot be recognized for tax purposes; that petitioner did not borrow and was not indebted for $3,156,000; that in reality he did not purchase the bonds; and that the amounts paid by petitioner to Gibraltar in 1953, 1954, 1955, 1956, and 1957 were not interest paid on indebtedness and, therefore, were not deductible under section 23(b), 1939 Code, and section…
1Opinion of the Court
Estate of Martin M. Melcher, Deceased, Terrance Paul Melcher, Administrator, and Doris Day Melcher v. Commissioner.
Estate of Melcher v. Commissioner
Docket Nos. 73707, 92295.
United States Tax Court
T.C. Memo 1970-237; 1970 Tax Ct. Memo LEXIS 120; 29 T.C.M. (CCH) 1010; T.C.M. (RIA) 70237;
August 24, 1970, Filed.
Issue 1: (a) Held, upon the facts: That petitioner, Martn Melcher, did not enter into a bona fide transaction in 1953 for the purchase of $3,000,000 Federal Land Bank bonds; the transaction was without substance; it was a sham; and cannot be recognized for tax purposes; that petitioner did…
2Cases cited64 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Higgins v. SmithSupreme Court of the United States · 1940
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
59 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Thompson v. CommissionerUnited States Tax Court · 1976
- Chiabai v. CommissionerUnited States Tax Court · 1982
- Norton v. CommissionerUnited States Tax Court · 1970
- Thompson v. CommissionerUnited States Tax Court · 1976
- Webber v. CommissionerUnited States Tax Court · 1992