Trinova Corp. v. Commissioner
United States Tax Court
P, a corporation, filed a consolidated tax return with its affiliated companies. P operated a division with assets that included certain section 38 assets upon which investment tax credits (ITC) had been claimed.
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P, a corporation, filed a consolidated tax return with its affiliated companies. P operated a division with assets that included certain section 38 assets upon which investment tax credits (ITC) had been claimed. P transferred the division assets to a wholly owned subsidiary, G. P agreed to transfer its shares in G to another shareholder, H, in return for H's shares in P. The two transactions qualified for nonrecognition status under secs. 351, 355, and 368 (a) (1) (D), I.R.C. R determined a deficiency for P's failure to include ITC recapture in income under sec. 47(a), I.R.C., on its 1986…
1Opinion of the Court
OPINION
Tannenwald, Judge:
Respondent determined the following deficiencies in petitioner’s Federal income taxes and additions to tax:
Addition to tax
Year Deficiency sec. 6661(a)
1985 $117,988
1986 11,630,928 $1,429,687
1987 4,924,255
1988 834,875
After concessions, the issue for decision is whether petitioner is liable for recapture in 1986 of investment tax credits (itc) claimed on certain section 381 assets that were transferred to a wholly owned subsidiary, the stock of which was then transferred out of the consolidated group in a tax-free transaction. If this issue is resolved in favor of…
2Cases cited17 opinions
- Commissioner v. WilcoxSupreme Court of the United States · 1946
- James E. Threlkeld v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1988
- Threlkeld v. CommissionerUnited States Tax Court · 1986
- Norfolk Southern Corp. v. CommissionerUnited States Tax Court · 1995
- Peninsula Steel Products & Equipment Co. v. CommissionerUnited States Tax Court · 1982
12 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
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- Aeroquip-Vickers v. CIRCourt of Appeals for the Sixth Circuit · 2003
- Aeroquip-Vickers, Inc. And Subsidiaries, F/k/a Trinova Corp. And Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 2004
- Trinova Corp. v. CommissionerUnited States Tax Court · 1997