U.S. v. Kirby Lumber Co.,284 U.S. 1 (1931), TAXATION

Nature of the Case

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Facts

Kirby Lumber Company issued its own bonds for $12,126,800 for which it got par value. Later in the same year, it purchased some of its own bonds at less than par and realized a gain of $137,521.30 from the transactions. The IRS taxed the amount of the gain. Kirby paid the tax and then sued for a refund.