Apis Productions, Inc. v. Commissioner
United States Tax Court
P, producer of certain variety shows, claimed investment tax credits with respect to the shows. R denied the claimed credits, on the basis that the tapes of the shows were not "qualified film" under sec. 48(k)(1)(B), I.R.C. 1954, as amended. Held: The market for the tapes was not primarily topical or otherwise essentially transitory in nature. The tapes therefore constituted qualified film eligible for the investment tax credit.
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P, producer of certain variety shows, claimed investment tax credits with respect to the shows. R denied the claimed credits, on the basis that the tapes of the shows were not "qualified film" under sec. 48(k)(1)(B), I.R.C. 1954, as amended. Held: The market for the tapes was not primarily topical or otherwise essentially transitory in nature. The tapes therefore constituted qualified film eligible for the investment tax credit. Held, further, the categorical exclusion of variety shows from "qualified film" contained in sec. 1.48-8(a)(3)(iii), Income Tax Regs., is invalid.
1Opinion of the Court
COHEN, Judge-.
Respondent determined deficiencies in petitioner’s Federal income tax of $402 and $79,871 for the taxable years ended July 31, 1976, and July 31, 1977, respectively. The only issue for decision is whether the video tapes of certain television variety shows produced by petitioner constitute “qualified film” under section JSfkMlHB),1 which is eligible for the investment tax credit.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found. The stipulation of facts and exhibits attached thereto are incorporated herein by this reference.
Petitioner is a California…
2Cases cited14 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. Vogel Fertilizer Co.Supreme Court of the United States · 1982
- Fawcus MacHine Co. v. United StatesSupreme Court of the United States · 1931
- Dunn v. CommissionerUnited States Tax Court · 1978
- Commissioner v. EngleSupreme Court of the United States · 1984
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3Cited by3 opinions
- Rose v. CommissionerUnited States Tax Court · 1987
- Apis Productions, Inc. v. CommissionerUnited States Tax Court · 1986
- Rose v. CommissionerUnited States Tax Court · 1987