Barnett v. Commissioner
United States Tax Court
Taxpayer purportedly borrowed money from Gibraltar Financial Corp. to buy U.S. Treasury certificates of indebtedness. Gibraltar did not have the funds to loan to petitioner nor the certificates. Gibraltar arranged for the purchase of the certificates which were pledged as collateral with a bank to secure the bank's loan to Gibraltar, which funds were applied to the purchase.
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Taxpayer purportedly borrowed money from Gibraltar Financial Corp. to buy U.S. Treasury certificates of indebtedness. Gibraltar did not have the funds to loan to petitioner nor the certificates. Gibraltar arranged for the purchase of the certificates which were pledged as collateral with a bank to secure the bank's loan to Gibraltar, which funds were applied to the purchase. The certificates were sold by Gibraltar within 30 days and the proceeds of the sales were applied by Gibraltar in repayment of the bank's loan. Held: An amount paid by petitioner to Gibraltar in December 1957, designated…
1Opinion of the Court
Harron, Judge:
Respondent determined a deficiency in income tax for 1957 in the amount of $16,189.36. The question is whether petitioner is entitled to a deduction in 1957 of $30,850.49 under section 163 (a), 1954 Code, as interest paid on indebtedness.
FINDINGS OF FACT
Most of the facts have been stipulated. The stipulated facts are found accordingly.
Petitioners are residents of Merrick, 17.Y. They filed a joint return for 1957 with the district director of internal revenue in Brooklyn, New York, on the basis of a calendar year and cash method of accounting. Since the issue relates only to Max…
2Cases cited33 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Knetsch v. United StatesSupreme Court of the United States · 1960
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- Benjamin D. And Madeline Prentice Gilbert v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1957
28 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- Goldstein v. CommissionerUnited States Tax Court · 1965
- Sandor v. CommissionerUnited States Tax Court · 1974
- Burck v. CommissionerUnited States Tax Court · 1975
- Derr v. CommissionerUnited States Tax Court · 1981
- Collins v. CommissionerUnited States Tax Court · 1970
16 more not listed; retrieve them via the Exa API.