Clyde Bacon, Inc. v. Commissioner
United States Tax Court
1. Petitioner issued securities, called "debenture certificates," in which it acknowledged itself indebted to the holder for the repayment of the principal at a definite due date, with interest at 6 percent, payable semiannually, with the option to defer interest payments for four years if petitioner's cash position should so warrant, but delinquency thereafter making the principal immediately due and collectible, the securities being subordinate to creditors but superior to…
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1. Petitioner issued securities, called "debenture certificates," in which it acknowledged itself indebted to the holder for the repayment of the principal at a definite due date, with interest at 6 percent, payable semiannually, with the option to defer interest payments for four years if petitioner's cash position should so warrant, but delinquency thereafter making the principal immediately due and collectible, the securities being subordinate to creditors but superior to holders of common stock, the only stock issuable under petitioner's articles of incorporation. The securities were…
1Opinion of the Court
Clyde Bacon, Inc., Petitioner, v. Commissioner of Internal Revenue, Respondent
Clyde Bacon, Inc. v. Commissioner
Docket No. 4223
United States Tax Court
4 T.C. 1107; 1945 U.S. Tax Ct. LEXIS 191;
April 9, 1945, Promulgated
Decision will be entered under Rule 50.
1. Petitioner issued securities, called "debenture certificates," in which it acknowledged itself indebted to the holder for the repayment of the principal at a definite due date, with interest at 6 percent, payable semiannually, with the option to defer interest payments for four years if petitioner's cash position should so warrant, but…
2Cases cited4 opinions
- Raybestos-Manhattan, Inc. v. United StatesSupreme Court of the United States · 1935
- Morley Cypress Trust, Schedule "B" v. CommissionerUnited States Tax Court · 1944
- Kell v. CommissionerUnited States Board of Tax Appeals · 1934
- Clyde Bacon, Inc. v. CommissionerUnited States Tax Court · 1945