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Commissioner v. Korell, 339 U.S. 619 (1950)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Commissioner v. Korell, 339 U.S. 619 (1950)
Commissioner v. Korell No. 384 Argued February 7, 1950 Decided June 5, 1950 339 U.S. 619
CERTIORARI TO THE UNITED STATES COURT OF APPEALS
FOR THE SECOND CIRCUIT
Syllabus
In 1944, an individual taxpayer purchased at a premium price of $121 certain taxable corporate bonds with a face value of $100 which were then callable at $104. Upon payment of $40, each bond was convertible at the option of the holder into a share of common stock which then had a market value of $163.
Held: under § 125 of the Internal Revenue Code, the taxpayer, in his income tax return for 1944, was entitled to deduct, as "amortizable bond premium" on each bond, the difference between the purchase price of $121 and the call price of $104. Pp. 620-628.
(a) The callability and convertibility of these bonds did not remove them from the reach of § 125. Pp. 623-624.
(b) That the premium may have been paid for the conversion privilege, rather than for a higher rate of interest, did not prevent it from being amortizable under § 125. Pp. 624-628.
(c) The term "bond premium" in § 125 means any extra payment, regardless of the reason therefor. P. 627.
176 F.2d 152, affirmed.
The Commissioner of Internal Revenue disallowed respondent’s deduction in his individual income tax return of "amortizable bond premium" under § 125 of the Internal Revenue Code. The Tax Court overruled the Commissioner. 10 T.C. 1001. The Court of Appeals affirmed. 176 F.2d 152. This Court granted certiorari. 338 U.S. 890. Affirmed, p. 628.
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Chicago: U.S. Supreme Court, "Syllabus," Commissioner v. Korell, 339 U.S. 619 (1950) in 339 U.S. 619 339 U.S. 620. Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=SBFPU8XGNMVDD81.
MLA: U.S. Supreme Court. "Syllabus." Commissioner v. Korell, 339 U.S. 619 (1950), in 339 U.S. 619, page 339 U.S. 620. Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=SBFPU8XGNMVDD81.
Harvard: U.S. Supreme Court, 'Syllabus' in Commissioner v. Korell, 339 U.S. 619 (1950). cited in 1950, 339 U.S. 619, pp.339 U.S. 620. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=SBFPU8XGNMVDD81.
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