Joseph D. Patton and Constance M. Patton v. Oscar M. Jonas, Collector

LINDLEY, Circuit Judge.

This is an appeal-from a determination by the district court that certain payments made by plaintiff taxpayer did not constitute “interest paid * * * on indebtedness * * * ” within the meaning of Section 23(b) of the Internal Revenue Code of 1939. 26 U.S.C.A. § 23 (b). This, the only problem with which we are confronted, entails a construction on our part of a contract referred to herein as the Lodgewood-Patton agreement, in order that we may determine whether a debtor-creditor relationship was created thereby. A brief statement of the facts as stipulated follows.

In…