United States v. Kirby Lumber Co

In July, 1923, the plaintiff, the Kirby Lumber Company, issued its own bonds for $1-2,126,800 for which it received their par value. Later in the same year it purchased in the open market some of the same bonds at less than par, the difference of price being $137,521.30. The. question is whether this difference is a taxable gain or income of the plaintiff for the year 1923, By the Rev enue Act of (November 23,) 1921, c. 136, § 213 (a) gross income includes, “ gains or profits and income derived from any source whatever,” and by the Treasury Regulations authorized, by § 1303, that have been in…