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financial investments); Cotter & Co. v. United States, 765
F.2d 1102 (Fed. Cir. 1985) (income from rental of excess
warehouse space); Land O'Lakes v. United States, 675 F.2d
988 (8th Cir. 1982) (dividends); Illinois Grain Corp. v.
Commissioner, 87 T.C. 435 (1986) (dividends and income from
rental of barges); Dundee Citrus Growers Association v.
Commissioner, T.C. Memo. 1991-487 (interest income);
Linnton Plywood Association v. United States, 410 F. Supp.
1100 (D. Or. 1976).
In fact, the premise of respondent's argument, that
section 1.1382-3(c)(2), Income Tax Regs., requires income
from the lease of premises, from investment in securities,
and from the sale or exchange of capital assets to be
treated as nonpatronage per se was rejected by this Court
in Illinois Grain Corp. v. Commissioner, supra 451. In
that case, the Court noted that “the apparently clear
language of the regulation”, stating that income from the
lease of premises, from investment in securities, or from
the sale or exchange of capital assets are examples of
nonpatronage income is language that, under the law, as it
has developed, “does not always mean what it literally
says.” Id. The Court continued as follows:
Thus, in the case of interest, both the
courts and respondent have acknowledged that
interest income may have the quality of income
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