ANDERSON v. C. I. R.

No. 76-1677.

568 F.2d 386 (1978)

Herman H. ANDERSON and Ceclia C. Anderson, Petitioners-Appellants, v. COMMISSIONER OF INTERNAL REVENUE, Respondent-Appellee.

United States Court of Appeals, Fifth Circuit.

February 24, 1978.


Attorney(s) appearing for the Case

Reuben M. Ginsberg, Donald J. Forman, Roy E. Graham, Dallas, Tex., for petitioners-appellants.

Jonathan S. Cohen, Carolyn R. Just, Gilbert E. Andrews, Act. Chief, App. Sect., Crombie J. D. Garrett, Attys., Tax Div., U.S. Dept. of Justice, Meade Whitaker, Chief Counsel, Internal Revenue Service, Myron C. Baum, Acting Asst. Atty. Gen., Daniel F. Ross, Tax Div., Dept. of Justice, Washington, D. C., for respondent-appellee.

Before COLEMAN, AINSWORTH and FAY, Circuit Judges.


AINSWORTH, Circuit Judge:

This appeal by Herman H. Anderson and his wife1 from the United States Tax Court's decision presents the issue of when a cash basis taxpayer may deduct prepaid interest. After moving to California in June 1968, Anderson, a successful real estate builder and investor, was approached by Lytton Savings and Loan Association of Northern California (Lytton) about the possibility...

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