Banc One Corp. v. Commissioner
United States Tax Court
P acquired two banks at prices exceeding the aggregate book values of the assets reported in the financial statements of the acquired banks. Held, petitioner is not precluded from allocating the aggregate purchase prices among the acquired assets even though such allocations were not negotiated or calculated at the time of the acquisitions.
Read the full summary
P acquired two banks at prices exceeding the aggregate book values of the assets reported in the financial statements of the acquired banks. Held, petitioner is not precluded from allocating the aggregate purchase prices among the acquired assets even though such allocations were not negotiated or calculated at the time of the acquisitions. Held, further, depreciation deductions claimed by P with respect to a "loan premium" denied because P failed to establish basis in excess of book value for the loans. Held, further, P is not entitled to depreciation deductions with respect to core deposits…
1Opinion of the Court
Cohen, Judge:
Respondent determined deficiencies in petitioner’s income tax liability of $455,263 for the tax year ended 1974 and $967,265 for the tax year ended 1975. The issues for decision are as follows: (1) Whether petitioner should be allowed depreciation deductions under section 1671 with respect to either loan or deposit premiums allegedly acquired in the purchase of two banks, and (2) whether petitioner properly allocated the aggregate purchase prices of the two banks among the individual assets acquired in proportion to the relative values of the assets as determined by petitioner…
2Cases cited48 opinions
- Massey Motors, Inc. v. United StatesSupreme Court of the United States · 1960
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Burnet v. Niagara Falls Brewing Co.Supreme Court of the United States · 1931
- Metropolitan Bank v. St. Louis Dispatch Co.Supreme Court of the United States · 1893
- Richard M. Boe and Mary Lots Boe v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
43 more not listed; retrieve them via the Exa API.
3Cited by35 opinions
- Citizens & Southern Corp. v. CommissionerUnited States Tax Court · 1988
- UFE, Inc. v. CommissionerUnited States Tax Court · 1989
- Meredith Corp. v. CommissionerUnited States Tax Court · 1994
- Nestle Holdings v. CommissionerUnited States Tax Court · 1995
- Southern Bancorporation, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1988
30 more not listed; retrieve them via the Exa API.