Legal Opinion

Consolidated Freightways, Inc. & Affiliates v. Commissioner

United States Tax Court

Decided July 22, 1980No. Docket No. 8066-76PublishedCited by 47 opinions

Petitioner, through its various subsidiaries, is engaged in the transportation by truck of general commodities freight. As part of this business, petitioner invested in truck dock facilities. Petitioner also made deposits of security with a surety company under a contract whereby the surety agreed to file surety bonds with the various jurisdictions in which petitioner operates.

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Petitioner, through its various subsidiaries, is engaged in the transportation by truck of general commodities freight. As part of this business, petitioner invested in truck dock facilities. Petitioner also made deposits of security with a surety company under a contract whereby the surety agreed to file surety bonds with the various jurisdictions in which petitioner operates. These bonds were necessary so that petitioner could meet the financial responsibility requirements for operating in the various jurisdictions. Petitioner claimed an investment tax credit for the docking facilities and…

1Opinion of the Court

Sterrett, Judge:

By letter dated June 2, 1976, respondent determined deficiencies in income taxes due from petitioner1 for the following taxable years and amounts:

TYE Dec. 31— Deficiency

1966. $84,395

1967. 152,664

1968. 181,428

1969. 493,076

1970. 41,661

Total. 953,224

After concessions, the primary issues for our decision are (1) whether petitioner’s investments in certain truck docks qualify for the investment credit, and (2) whether petitioner’s payments to a surety are deductible within the meaning of section 461(f).

FINDINGS OF FACT

Some of the facts were stipulated and are so found. The…

2Cases cited30 opinions

  1. Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
  2. Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
  3. Fawcus MacHine Co. v. United StatesSupreme Court of the United States · 1931
  4. Malinowski v. CommissionerUnited States Tax Court · 1979
  5. Catron v. CommissionerUnited States Tax Court · 1968

25 more not listed; retrieve them via the Exa API.

3Cited by47 opinions

  1. Hospital Corp. of Am. v. CommissionerUnited States Tax Court · 1997
  2. Munford, Inc. v. CommissionerUnited States Tax Court · 1986
  3. Samis v. CommissionerUnited States Tax Court · 1981
  4. Consolidated Freightways, Inc. v. CommissionerCourt of Appeals for the Ninth Circuit · 1983
  5. Chem Aero, Inc., a California Corporation v. United StatesCourt of Appeals for the Ninth Circuit · 1982

42 more not listed; retrieve them via the Exa API.

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