Bell Fibre Products Corp. v. Commissioner
United States Tax Court
Effective Jan. 1, 1969, petitioner elected, in accordance with sec. 1372, I.R.C. 1954, to become an electing small business corporation. In prior taxable years, petitioner had made qualified investments, entitling it to investment credits against tax under sec. 38, I.R.C. 1954, and related provisions.
Read the full summary
Effective Jan. 1, 1969, petitioner elected, in accordance with sec. 1372, I.R.C. 1954, to become an electing small business corporation. In prior taxable years, petitioner had made qualified investments, entitling it to investment credits against tax under sec. 38, I.R.C. 1954, and related provisions. At the time of the election, petitioner and its shareholders were not aware that the election would subject petitioner to liability for an investment credit recapture tax for the taxable period ended Dec. 31, 1968, unless they filed an assumption agreement pursuant to sec. 1.47-4(b), Income Tax…
1Opinion of the Court
OPINION
Sections 38 and 46 to 50 provide a direct credit against a taxpayer’s income tax, computed with reference to a specified percentage of the cost of, or basis in, certain qualified depreciable property, referred to as section 38 property, purchased and placed in service during the taxable year. The applicable percentage depends upon the useful life of the qualifying property. Where a credit has been allowed for such property and it is “disposed of, or otherwise ceases to be section 38 property with respect to the taxpayer” prior to the expiration of the useful life utilized to compute…
2Cases cited15 opinions
- United States v. IoziaDistrict Court, S.D. New York · 1952
- Sperapani v. CommissionerUnited States Tax Court · 1964
- Barclay White Co. v. Unemployment Compensation Board of ReviewSupreme Court of Pennsylvania · 1946
- Cary v. CommissionerUnited States Tax Court · 1963
- Columbia Iron & Metal Co. v. CommissionerUnited States Tax Court · 1973
10 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Hewlett-Packard Co. v. CommissionerUnited States Tax Court · 1977
- Manson Western Corp. v. CommissionerUnited States Tax Court · 1981
- Younger v. CommissionerUnited States Tax Court · 1992
- Bell Fibre Products Corp. v. CommissionerUnited States Tax Court · 1976
- Hewlett-Packard Co. v. CommissionerUnited States Tax Court · 1977
3 more not listed; retrieve them via the Exa API.