United States v. Kirby Lumber Co.
United States Supreme Court
284 U.S. 1 (1931)
Relevant factsFree
Kirby Lumber Company (plaintiff) issued over $12 million in bonds in 1923, then later that year bought some of them back at less than their original issuing price, saving $137,521.30. The lower court treated this savings as taxable income to Kirby Lumber.
IssueFree
Whether a corporation that buys back a bond at less than its issuing price realizes taxable income.