CWT Farms, Inc. v. Commissioner
United States Tax Court
F owned all the stock of I, which elected to be treated as a DISC. During the years in issue, I made loans to F, and such loans were evidenced by demand notes. On its books, I described such loans as "producer's loans." Held, such loans did not qualify as producer's loans under sec. 993(d)(1)(B), I.R.C. 1954, since they were evidenced by demand notes, and accordingly, I did not qualify as a DISC since 95 percent of its assets were not qualified export assets.
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F owned all the stock of I, which elected to be treated as a DISC. During the years in issue, I made loans to F, and such loans were evidenced by demand notes. On its books, I described such loans as "producer's loans." Held, such loans did not qualify as producer's loans under sec. 993(d)(1)(B), I.R.C. 1954, since they were evidenced by demand notes, and accordingly, I did not qualify as a DISC since 95 percent of its assets were not qualified export assets. Held, further, a dividends received deduction is not allowed for the accumulated DISC income of I deemed distributed as a dividend to F…
1Opinion of the Court
Simpson, Judge:
The Commissioner determined the following deficiencies in the petitioners’ Federal income taxes:
Petitioner Year ended Deficiency
CWT Farms, Inc .. 9/30/75 9/30/76 9/30/77 $173.91 24,624.41 28,965.84
CWT International, Inc 9/30/75 9/30/76 9/30/77 37,634.40 34,675.38 26,067.37
The ultimate issue for decision is whether CWT International, Inc. (International), qualified as a domestic international sales corporation (DISC) for its taxable years ending in 1975, 1976, and 1977. Here, we resolve that issue by deciding whether certain loans made by International to its parent corporation,…
2Cases cited16 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Bingler v. JohnsonSupreme Court of the United States · 1969
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3Cited by24 opinions
- Cwt Farms, Inc. And Cwt International, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eleventh Circuit · 1985
- CWT Farms, Inc. v. CommissionerUnited States Tax Court · 1982
- Sam Goldberger, Inc. v. CommissionerUnited States Tax Court · 1987
- Dresser Industries, Inc. v. CommissionerUnited States Tax Court · 1989
- Coca-Cola Co. v. CommissionerUnited States Tax Court · 1996
19 more not listed; retrieve them via the Exa API.