Commissioner of Internal Revenue v. Hemenway-Johnson Furniture Co.

Fifth Circuit

Commissioner of Internal Revenue v. Hemenway-Johnson Furniture Co.

174 F.2d 793, 37 A.F.T.R. (P-H) 1515, 1949 U.S. App. LEXIS 4367

Court of Appeals for the Fifth Circuit·Decided May 30, 1949·No. No. 12664·Published·Cited by 2 cases

Opinion

PER curiam:

The question is whether payments made on some of taxpayer’s outstanding securities were interest which it can deduct from its income for purposes of taxation,' or were dividends paid out. The answer depends on whether the securities are interest bearing debentures, as they purport on their face to be, or are really preferred stock. There are features and facts looking both ways. The Tax Court in a careful opinion held the payments were interest. We affirm that conclusion.

Affirmed.

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PER curiam:

The question is whether payments made on some of taxpayer’s outstanding securities were interest which it can deduct from its income for purposes of taxation,' or were dividends paid out. The answer depends on whether the securities are interest bearing debentures, as they purport on their face to be, or are really preferred stock. There are features and facts looking both ways. The Tax Court in a careful opinion held the payments were interest. We affirm that conclusion.

Affirmed.

Commissioner of Internal Revenue v. Hemenway-Johnson Furniture Co., 174 F.2d 793, 37 A.F.T.R. (P-H) 1515, 1949 U.S. App. LEXIS 4367 (5th Cir. 1949).

Pincite

174 F.2d 793 (Commissioner of Internal Revenue v. Hemenway-Johnson Furniture Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Opinion

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