Carnegie Productions, Inc. v. Commissioner
United States Tax Court
Petitioner produced a motion-picture film with funds supplied by another corporation pursuant to an agreement whereby upon completion of the motion picture all rights thereto, except petitioner's share in any income from its distribution, vested in the corporation supplying the funds. Held, petitioner acquired no basis or interest in the motion picture on account of which petitioner could claim a deduction for amortization or depreciation.
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Petitioner produced a motion-picture film with funds supplied by another corporation pursuant to an agreement whereby upon completion of the motion picture all rights thereto, except petitioner's share in any income from its distribution, vested in the corporation supplying the funds. Held, petitioner acquired no basis or interest in the motion picture on account of which petitioner could claim a deduction for amortization or depreciation. Held, further: Petitioner is not entitled to a deduction for interest. No liability for interest has accrued and no indebtedness has been established.…
1Opinion of the Court
Quealy, Judge:
The Commissioner determined deficiencies in petitioner’s income taxes and additions to the tax thereon in the amounts and for the taxable years shown below:
TYB Jan. SI— Deficiency Addition to tax under sec. 6651(a)[1]
1962_ $21, 712. 89 $5, 428. 22
1963_ 998.75 _
1964_ 36, 504. 38 _
1965_ 27, 554. 57 _
Total_ 86, 770. 59 5, 428. 22
In the redetermination of the tax liability of the petitioner for the taxable years set forth above, the principal issue presented for decision relates to the question (1) whether the petitioner was entitled to claim depreciation on account of a certain…
2Cases cited18 opinions
- Crane v. CommissionerSupreme Court of the United States · 1947
- Mayerson v. CommissionerUnited States Tax Court · 1966
- Miller Music Corp. v. Charles N. Daniels, Inc.Supreme Court of the United States · 1960
- Edward B. Marks Music Corporation, Plaintiff-Appellant-Appellee v. Charles K. Harris Music Publishing Co., Inc., Defendant-Appellee-AppellantCourt of Appeals for the Second Circuit · 1958
- G. Ricordi & Co. v. Paramount Pictures, Inc.Court of Appeals for the Second Circuit · 1951
13 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Leahy v. CommissionerUnited States Tax Court · 1986
- Tolwinsky v. CommissionerUnited States Tax Court · 1986
- Durkin v. CommissionerUnited States Tax Court · 1986
- Law v. CommissionerUnited States Tax Court · 1986
- Bailey v. CommissionerUnited States Tax Court · 1988
13 more not listed; retrieve them via the Exa API.