Avery v. Commissioner of Internal Revenue

DENMAN, Circuit Judge.

Petitioner seeks review of a decision of the Board of Tax Appeals redetermining a deficiency in income tax for the year 1935 in the amount of $1,375.68.

The Board held (1) that the difference between the single premium payment and the sum of the amounts received by the petitioner prior to and upon maturity ,of an insurance policy was not capital gain but ordinary income, and (2) that interest received upon certain street improvement bonds was not exempt but taxable.

The insurance policy, taken out in 1925 upon payment of a single premium of $23,-069.75, carried both…