[Code of Federal Regulations]
[Title 26, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 26CFR1.279-7]

[Page 658]
 
                       TITLE 26--INTERNAL REVENUE
 
    CHAPTER I--INTERNAL REVENUE SERVICE, DEPARTMENT OF THE TREASURY 
                               (CONTINUED)
 
PART 1_INCOME TAXES--Table of Contents
 
Sec. 1.279-7  Effect on other provisions.

    Under section 279(j), no inference is to be drawn from any provision 
in section 279 and the regulations thereunder that any instrument 
designated as a bond, debenture, note, or certificate or other evidence 
of indebtedness by its issuer represents an obligation or indebtedness 
of such issuer in applying any other provision of this title. Thus, for 
example, an instrument, the interest on which is not subject to 
disallowance under section 279 could, under section 385 and the 
regulations thereunder, be found to constitute a stock interest, so that 
any amounts paid or payable thereon would not be deductible.

[T.D. 7262, 38 FR 5851, Mar. 5, 1973]