Coast Quality Construction Corporation and Subsidiaries v. United States

GODBOLD, Circuit Judge:

Two noted commentators have forecast that applying the “substantially the same trade or business” requirement of § 382(a) (1) (C) of the Internal Revenue Code would present problems that would “be difficult to resolve in practice” and would “practically insure a high level of uncertainty.” B. Bittker & J. Eustice, Federal Income Taxation of Corporations & Shareholders § 16.22, at 16-53 (3d ed. 1971). This appeal evidences the accuracy of the forecast. The District Court, in a trial without a jury, concluded that § 382(a) did not proscribe the corporate taxpayer’s…