Digest of Treasury Decisions Relating to Internal Revenue Issued Pursuant to the Acts of 1909, 1913, 1914, 1916, 1917 During the Period from September 9, 1916, to December 31, 1920; (Treasury Decision 2359-3111) (Paperback)

This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1921 Excerpt: ... in asrcrtaining maximum principal preferred stock will be considered as paid-up capital stock and not as indebtedness. (T. D. 2690; art. 180.) Full amount of stock as represented bv par value oi shares issued and outstanding is regarded as paid-up capital stork, except when assessable on account of deferred payments or when payable ic installments, in which case amount actually paid will constitute actual paid-up stock; where stock is issued without par or nominal value, paid-up capital stock for purpose of arriving at maximum principal will bo amount of cash paid into corporation or cash value at time acquired of property given in exchange for such stock; when there is no capital stick, entire a'nount of capital (not including interest-bearing indebtedness) employed in busings plus one-half of intorpet-bearin" indebtedness outstanding at clos-' of yosr, constitutes maximum principal upon which deductible interest can be computed. (T. 1). 2690; art. 181.) Capital employed in business, con.=tituting one of the elements in computing allowable interest deductions, contemplates entire capital paid in by members of companv, including so much oi iiccuimilated surplus as is actually used and emploved in tho business and properties of corporation, but does not include any borrowed capital or interest-bearing indebtedness. (T. I). k'Ci80; art. 181.) Tho qualifying phrase, "outstanding at the close of the year," as used in paragraph third of section 12 of the income-tax act, applies to paid-up capital stock or capital invested and interest-bearing indebtedness, which indebtedness, like the paid-up capital stock or capital invested, is required to be reported in making return of annual net income, as outstanding at close of year; from amount of investm...