Ticker Publishing Co. v. Commissioner
United States Board of Tax Appeals
1. Securities issued under the name of income bonds held to be, in substance, shares of preferred stock and the amounts payable thereunder denominated interest held to be dividends on preferred stock. 2. Held, that the instruments do not constitute written contracts entitling petitioner to the benefits of subsections (1) and (2) of section 26(c) of the Revenue Act of 1936. 3. A portion of the dividends on the preferred stock was paid by the Ticker Publishing Co., a New York…
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1. Securities issued under the name of income bonds held to be, in substance, shares of preferred stock and the amounts payable thereunder denominated interest held to be dividends on preferred stock. 2. Held, that the instruments do not constitute written contracts entitling petitioner to the benefits of subsections (1) and (2) of section 26(c) of the Revenue Act of 1936. 3. A portion of the dividends on the preferred stock was paid by the Ticker Publishing Co., a New York corporation, to a Delaware corporation, owner of the stock. Held, that the provisions of sections 26(b) and 27(h) of the…
1Opinion of the Court
*408OPINION.
Disney:
The primary question is whether the so-called income bonds are evidence of indebtedness entitling Ticker to deductions for interest accrued thereon during the taxable year or, in substance, certificates of stock, with no right to deductions for amounts paid or accrued thereunder.
The respondent’s contention here is that the so-called income bonds issued by Ticker were not more than preferred stock issued as a stock dividend without consideration. The petitioners contend that Ticker was indebted to the bondholders under the agreement of May 20, 1926, and that the securities were…
2Cases cited1 opinion
- Warren v. KingSupreme Court of the United States · 1883
3Cited by13 opinions
- Deakman-Wells Co., Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1954
- Bregin v. CommissionerUnited States Tax Court · 1980
- Bruno v. CommissionerUnited States Tax Court · 1979
- Zampini v. CommissionerUnited States Tax Court · 1991
- Annis Furs, Inc. v. CommissionerUnited States Tax Court · 1943
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