Bowers v. Kerbaugh-Empire Co.

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Bowers v. Kerbaugh-Empire Co.

Supreme Court of the United States

Argued January 25, 1926
Decided May 3, 1926


Full case name:	Bowers, Collector of Internal Revenue v. Kerbaugh-Empire Company

Citations:	271 U.S. 170; 46 S. Ct. 449; 70 L. Ed. 886; 1926 U.S. LEXIS 615; 1 U.S. Tax Cas. (CCH) P174; 5 A.F.T.R. (P-H) 6014; 1926 P.H. P1865

Prior history:	Error to the United States District Court for the Southern District of New York

Holding

No taxable income arose from the repayment in German marks of loans that had originally been made in U.S. dollars, despite the fact that the marks had gone down in value relative to the dollar since the loan had been made.

Court membership

Chief Justice: William Howard Taft
Associate Justices: Oliver Wendell Holmes, Jr., Willis Van Devanter, James Clark McReynolds, Louis Brandeis, George Sutherland, Pierce Butler, Edward Terry Sanford, Harlan Fiske Stone

Case opinions

Majority by: Butler
Joined by: Taft, Holmes, Van Devanter, McReynolds, Sutherland, Sanford, Stone
Concurrence by: Brandeis

Laws applied

U.S. Const.

Bowers v. Kerbaugh-Empire Co., 271 U.S. 170 (1926)^[1], was a case in which the United States Supreme Court held that no taxable income arose from the repayment in German marks of loans that had originally been made in U.S. dollars, despite the fact that the marks had gone down in value relative to the dollar since the loan had been made.

This decision was narrowed by the court six years later in United States v. Kirby Lumber Co..