Bennett Paper Corp. & Subsidiaries v. Commissioner
United States Tax Court
In 1974, petitioners constituted an affiliated group of corporations which filed a consolidated return for that year. P, the parent corporation, directly owned 93 percent of the stock in MHL, which directly owned 95 percent of the stock in KI.
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In 1974, petitioners constituted an affiliated group of corporations which filed a consolidated return for that year. P, the parent corporation, directly owned 93 percent of the stock in MHL, which directly owned 95 percent of the stock in KI. In 1973, KI purchased and began operating a marina business, which it sold in 1974. On Aug. 27, 1974, Concepts, one of P's subsidiaries, created a wholly owned subsidiary, CIYC, whose business purpose was to establish a marina and yacht club. In 1974, CIYC did collect some application fees from persons seeking membership in its proposed yacht club.…
1Opinion of the Court
Wiles, Judge:
Respondent determined a deficiency of $93,895 in petitioners’ 1974 Federal income tax. After concessions, the issues for decision are:(1) Whether certain preopening expenditures claimed on petitioners’ consolidated return were incurred in the course of a trade or business under section 162(a).1(2) Whether petitioners are entitled to a deduction in excess of the amount allowed by respondent for a liability incurred under a profit sharing plan.
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
Petitioners maintained their principal places of business…
2Cases cited41 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Gregory v. HelveringSupreme Court of the United States · 1935
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- United States v. AndersonSupreme Court of the United States · 1926
- Higgins v. SmithSupreme Court of the United States · 1940
36 more not listed; retrieve them via the Exa API.
3Cited by34 opinions
- Johnsen v. CommissionerUnited States Tax Court · 1984
- Bennett Paper Corporation and Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1983
- Vastola v. CommissionerUnited States Tax Court · 1985
- Hoopengarner v. CommissionerUnited States Tax Court · 1983
- North Cent. Life Ins. Co. v. CommissionerUnited States Tax Court · 1989
29 more not listed; retrieve them via the Exa API.