Pilgrim's Pride Corp. v. Comm'r
United States Tax Court
P is the successor in interest to G. G was contractually obligated to purchase, and in 1999 did purchase, securities from S and T for $98.6 million. The securities were capital assets of G. In 2004 S offered to redeem the securities for $20 million.
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P is the successor in interest to G. G was contractually obligated to purchase, and in 1999 did purchase, securities from S and T for $98.6 million. The securities were capital assets of G. In 2004 S offered to redeem the securities for $20 million. G's board of directors decided to abandon the securities for no consideration because a $98.6 million ordinary loss would produce tax savings greater than the $20 million offered by S. On June 24, 2004, G voluntarily surrendered the securities to S and T for no consideration. On its Federal income tax return for the tax year ending June 30, 2004,…
1Opinion of the Court
OPINION
Dawson, Judge:
Petitioner petitioned the Court pursuant to section 6213(a) and (f)(1)1 for redetermination of a $29,682,682 deficiency in Federal income tax and a $5,936,536 accuracy-related penalty under section 6662(a) that respondent determined against petitioner as successor in interest to Gold Kist Inc. (GK Co-op), a Georgia cooperative marketing association, for its tax year ending June 30, 2004. After a concession by respondent,2 the only issue remaining for decision is whether a $98.6 million loss resulting from GK Co-op’s abandonment of certain securities in 2004 is ordinary or…
2Cases cited37 opinions
- Landgraf v. USI Film ProductsSupreme Court of the United States · 1994
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Griffin v. Oceanic Contractors, Inc.Supreme Court of the United States · 1982
- United States v. CraftSupreme Court of the United States · 2002
- Burnet v. WellsSupreme Court of the United States · 1933
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3Cited by2 opinions
- Pilgrim's Pride Corp. v. Comm'rUnited States Tax Court · 2013
- Pilgrim's Pride Corporation Successor in Interest to Pilgrim's Pride Corporation of Georgia f/k/a Gold Kist, Inc. v. CommissionerUnited States Tax Court · 2013