Case Name: Appeal of ILLINOIS RURAL CREDIT ASSOCIATION
Court: United States Board of Tax Appeals
Jurisdiction: United States
Decision Date: 1926-04-03
Citations: 3 B.T.A. 1178
Docket Number: Docket No. 5058
Parties: Appeal of ILLINOIS RURAL CREDIT ASSOCIATION.
Judges: Before Graupner, Trammell, and Phillips.
Reporter: Reports of the United States Board of Tax Appeals
Volume: 3
Pages: 1178–1180

Head Matter:
Appeal of ILLINOIS RURAL CREDIT ASSOCIATION.
Docket No. 5058.
Submitted December 11, 1925.
Decided April 3, 1926.
R. O. De Mange, Esq., for the taxpayer.
M. N. Fisher, Esq., for the Commissioner.
Before Graupner, Trammell, and Phillips.

Opinion:
OPINION.
GRAupneR:
The issue in this appeal is whether the sum of $42,-950, or any part of it, which was paid by subscribers on account of their subscriptions to capital stock of the taxpayer, was income to the taxpayer.
The payments on account of the stock subscriptions, at the time they were made, were undoubtedly capital payments, being made to provide capital for the corporation, and were in its hands capital receipts as distinguished from income. The fact that payments were made in installments and stock was never issued for such payments, because they were not made to the full amount of the subscriptions, does not alter their character.
There is no deficiency and it will be so ordered.