Duke Energy Natural Gas Corp. v. Commissioner
United States Tax Court
P owns and operates various systems of interconnected subterranean natural gas gathering pipelines and related compression facilities (the gathering systems). P argues that the modified accelerated cost recovery system allows P to depreciate the gathering systems over 7 years because P is a producer of natural gas within the meaning of Class 13.2 of Rev. Proc. 87-56, 1987-2 C.B. 674. R argues that P must depreciate the gathering systems over 15 years because P transports…
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P owns and operates various systems of interconnected subterranean natural gas gathering pipelines and related compression facilities (the gathering systems). P argues that the modified accelerated cost recovery system allows P to depreciate the gathering systems over 7 years because P is a producer of natural gas within the meaning of Class 13.2 of Rev. Proc. 87-56, 1987-2 C.B. 674. R argues that P must depreciate the gathering systems over 15 years because P transports gas, which brings P within Class 46.0 of Rev. Proc. 87-56, supra. HELD: P transports, and does not produce, gas; thus, P…
1Opinion of the Court
OPINION
Laro, Judge:
The parties submitted this case to the Court without trial. See Rule 122. Petitioner petitioned the Court to redetermine respondent’s determination of income tax deficiencies of $399,369 and $753,089 for its taxable years ended September 30, 1991 and 1992, respectively.
We must decide the cost recovery period of certain natural gas recovery systems under the modified accelerated cost recovery system (MACRS). Petitioner argues for a 7-year recovery period. Respondent argues for a 15-year recovery period. We hold for respondent. Unless otherwise noted, section references are…
2Cases cited3 opinions
- United States v. ScovilSupreme Court of the United States · 1955
- Simon v. Comm'rUnited States Tax Court · 1994
- Richard L. Simon and Fiona Simon v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1995
3Cited by9 opinions
- Duke Energy Natural Gas Corp. v. CommissionerCourt of Appeals for the Tenth Circuit · 1999
- Clajon Gas Co., L.P. v. Comm'rUnited States Tax Court · 2002
- PPL Corp. & Subsidiaries v. CommissionerUnited States Tax Court · 2010
- Clajon Gas Co., L.P. v. Comm'rUnited States Tax Court · 2002
- Clajon Gas Co., L.P. v. Comm'rUnited States Tax Court · 2002
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