Central Teresa Sugar Co. v. Commissioner
United States Board of Tax Appeals
1. Deduction, under the loss provision of the statute, disallowed of an amount paid out by a corporation in 1920 to a surety on certain of its trust notes to compensate him for an alleged loss of the amount of the enhancement in value, after its sale by the trustee, of certain shares of stock which the surety had pledged as collateral on the trust notes and which were sold by the trustee under the terms of the trust agreement upon default of the principal in the payment of…
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1. Deduction, under the loss provision of the statute, disallowed of an amount paid out by a corporation in 1920 to a surety on certain of its trust notes to compensate him for an alleged loss of the amount of the enhancement in value, after its sale by the trustee, of certain shares of stock which the surety had pledged as collateral on the trust notes and which were sold by the trustee under the terms of the trust agreement upon default of the principal in the payment of the trust notes. 2. Invested capital for the taxable year should be reduced by the amount paid out from the date of…
1Opinion of the Court
*278OPINION.
Smith :
The petitioner alleges in its petition that, (1) the Commissioner erred in disallowing Central Teresa Sugar Co., a New Jersey corporation, and a subsidiary of the petitioner, the Central Teresa Sugar Co. of Maryland, a deduction from gross income of $167,-425.05 paid by Central Teresa Sugar Co. of New Jersey to Alfred W. Gi eslíe, the endorser of and pledgor under certain of its notes, to reimburse the said Gieske for losses suffered by reason of the sale of certain collateral pledged by him; and (2) the Commissioner erred in reducing invested capital of the taxpayer by…
2Cases cited6 opinions
- Griggs v. . DayNew York Court of Appeals · 1899
- Baltimore Marine Insurance v. DalrympleCourt of Appeals of Maryland · 1866
- Howell v. SlausonCalifornia Supreme Court · 1890
- President of the Franklin Bank v. HarrisCourt of Appeals of Maryland · 1893
- Dimock v. United States National BankSupreme Court of New Jersey · 1893
1 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Central Teresa Sugar Co. v. CommissionerUnited States Board of Tax Appeals · 1928