Leslie v. Commissioner
United States Tax Court
The petitioner was, in 1959, a partner of Bache & Co.Bache borrowed large sums of money for the purposes of carrying on its brokerage business. It held a small amount of tax-exempt securities. Held: An interest deduction is denied under sec. 265(2), I.R.C. 1954, only when indebtedness is incurred or continued for the purpose of purchasing or carrying tax-exempt securities.
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The petitioner was, in 1959, a partner of Bache & Co.Bache borrowed large sums of money for the purposes of carrying on its brokerage business. It held a small amount of tax-exempt securities. Held: An interest deduction is denied under sec. 265(2), I.R.C. 1954, only when indebtedness is incurred or continued for the purpose of purchasing or carrying tax-exempt securities. The circumstances of this case establish that the indebtedness was not incurred or continued for such purpose.
1Opinion of the Court
Simpson, Judge:
Tbe respondent determined a deficiency in the income tax of John E. Leslie and Evelyn G. Leslie of $3,848.54 for the taxable year 1959. The only issue for decision is whether, within the meaning of section 265 (2) of the Internal Revenue Code of 1954,1 any of the indebtedness of Bache & Co., then a partnership engaged in the brokerage business, was incurred or continued to purchase or carry the tax-exempt securities owned by Bache.
FINDINGS OF FACT
Some of the facts were stipulated, .and those facts are so found.
The petitioners are individuals who were legal residents of New…
2Cases cited6 opinions
- The Wisconsin Cheeseman, Inc. v. United StatesCourt of Appeals for the Seventh Circuit · 1968
- Illinois Terminal Railroad Company v. The United StatesUnited States Court of Claims · 1967
- Constance M. Bishop v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1965
- Bishop v. CommissionerUnited States Tax Court · 1963
- Jacobson v. CommissionerUnited States Tax Court · 1957
1 more not listed; retrieve them via the Exa API.
3Cited by28 opinions
- John E. Leslie and Evelyn G. Leslie v. Commissioner of the Internal RevenueCourt of Appeals for the Second Circuit · 1969
- Bradford v. CommissionerUnited States Tax Court · 1973
- Indian Trail Trading Post, Inc. v. CommissionerUnited States Tax Court · 1973
- Ogden Phipps and Lillian B. Phipps v. The United StatesUnited States Court of Claims · 1969
- Shell Oil Co. v. CommissionerUnited States Tax Court · 1987
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