Maysteel Products, Inc. v. Commissioner
United States Tax Court
Petitioner purchased bonds at a premium with the earliest call date upon 30 days' notice. After holding the bonds 30 days it donated them to a charitable institution. A deduction was taken in its income tax return for the bond premium under section 125, I.R.C. 1939, and a further deduction taken in the amount of its equity in the bonds as a charitable contribution.
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Petitioner purchased bonds at a premium with the earliest call date upon 30 days' notice. After holding the bonds 30 days it donated them to a charitable institution. A deduction was taken in its income tax return for the bond premium under section 125, I.R.C. 1939, and a further deduction taken in the amount of its equity in the bonds as a charitable contribution. Held, the purchase of bonds at a premium and their contribution must be viewed as a single gift transaction which does not give rise to a bond premium deduction under sections 125 and 23(v). Held, further, that the fair market…
1Opinion of the Court
Withey, Judge:
The respondent has determined a deficiency in the income tax of petitioner for the fiscal year ended November 30, 1953, in the amount of $21,479.42. Petitioner claims an overpayment for that year in the amount of $85.37.
The issues for determination are (1) whether petitioner is entitled to a deduction of $12,250 for an amortizable bond premium in the manner provided by section 125 of the Internal Revenue Code of 1939 and (2) whether petitioner is entitled to the deduction of $17,131.49 for a gift to a charitable institution for that year.
FINDINGS OF FACT.
Some of the facts have…
2Cases cited8 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Superior Oil Co. v. Mississippi Ex Rel. KnoxSupreme Court of the United States · 1930
- Jones v. HelveringCourt of Appeals for the D.C. Circuit · 1934
- Lynch v. CommissionerUnited States Tax Court · 1959
- Shoenberg v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1935
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3Cited by40 opinions
- Hanover Bank v. CommissionerSupreme Court of the United States · 1962
- Skripak v. CommissionerUnited States Tax Court · 1985
- Bridges v. CommissionerUnited States Tax Court · 1963
- Waller v. CommissionerUnited States Tax Court · 1963
- Fabreeka Products Co. v. CommissionerCourt of Appeals for the First Circuit · 1961
35 more not listed; retrieve them via the Exa API.