H Enters. Int'l v. Commissioner
United States Tax Court
WII, a subsidiary of HEI, borrowed funds a part of which was used for specific business purposes of HEI and the balance transferred to HEI in cash. HEI, after the cash transfer, bought portfolio stock and tax-exempt securities.
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WII, a subsidiary of HEI, borrowed funds a part of which was used for specific business purposes of HEI and the balance transferred to HEI in cash. HEI, after the cash transfer, bought portfolio stock and tax-exempt securities. Held: There is a factual issue with respect to whether the purchase of the portfolio stock by HEI was directly attributable to the funds borrowed by WII and whether WII's indebtedness was incurred or continued to purchase or carry tax-exempt securities by HEI. There is nothing in either sec. 246A or sec. 265(a)(2), I.R.C., which as a matter of law causes the provisions…
1Opinion of the Court
OPINION
Scott, Judge:
Respondent determined deficiencies in petitioners’ Federal income taxes and additions to tax as follows:
Additions to tax
Year Deficiency Sec. 6653(a) Sec. 6662
6/30/89 ■ $3,474,671 $173,734
6/30/90 2,575,105 $231,580
6/30/91 2,181,276 118,195
All section references are to the Internal Revenue Code in effect for the years in issue, and all Rule references are to the Tax Court Rules of Practice and Procedure, unless otherwise indicated.
When this case was called from the calendar in St. Paul, Minnesota, the parties filed a stipulation disposing of all of the issues in this case,…
2Cases cited19 opinions
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Carnation Company v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1981
- First Chicago Corporation v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1988
- Clougherty Packing Company v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1987
- Occidental Petroleum Corp. v. CommissionerUnited States Tax Court · 1984
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3Cited by27 opinions
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- Shaw v. Commissioner (In re Estate of Neumann)United States Tax Court · 1996
- Hillman v. CommissionerUnited States Tax Court · 2000
- International Multifoods Corp. v. CommissionerUnited States Tax Court · 1997
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