Vail Assocs. v. Commissioner
United States Tax Court
Petitioner manufactures snow for use in its trade or business of providing recreational skiing facilities. Held, other tangible property used as an integral part of manufacturing may qualify for an investment tax credit regardless of whether the taxpayer is engaged in the trade or business of manufacturing.
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Petitioner manufactures snow for use in its trade or business of providing recreational skiing facilities. Held, other tangible property used as an integral part of manufacturing may qualify for an investment tax credit regardless of whether the taxpayer is engaged in the trade or business of manufacturing. Held, further, pipelines which transport and treat air and water used to manufacture snow are other tangible property under sec. 48(a)(1)(B)(i), I.R.C. 1954, and qualify for an ITC. Held, further, a pumphouse which houses and protects equipment used in manufacturing snow is not a building…
1Opinion of the Court
FAY, Judge:
Respondent determined a $120,196 deficiency in and petitioner claimed a $81,379 overpayment of petitioner’s Federal income tax for the taxable year ended April 30, 1981. After concessions, the issue is whether certain pipelines and a pumphouse used in petitioner’s snow-making systems qualify for the investment tax credit under section 48.1
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly. In addition to the stipulations, trial testimony, and exhibits offered at trial, the Court, in the presence of counsel and expert witnesses, viewed petitioner’s…
2Cases cited4 opinions
- Jacobellis v. OhioSupreme Court of the United States · 1964
- James v. United StatesSupreme Court of the United States · 1961
- Munford, Inc. v. CommissionerUnited States Tax Court · 1986
- Loda Poultry Co. v. CommissionerUnited States Tax Court · 1987
3Cited by8 opinions
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- Texas Instruments v. CommissionerUnited States Tax Court · 1992
- Des Moines Cold Storage Co. v. CommissionerUnited States Tax Court · 1988
- Hub City Foods, Inc. v. CommissionerUnited States Tax Court · 1988
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