Loewen v. Commissioner
United States Tax Court
Before 1976, Ps operated an unincorporated farming and cattle-feeding business and received investment credits under sec. 38, I.R.C. 1954, on equipment purchased for the business. In 1976, they transferred their sec. 38 property and the other assets of the business to a newly formed corporation in exchange for all the stock in such corporation.
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Before 1976, Ps operated an unincorporated farming and cattle-feeding business and received investment credits under sec. 38, I.R.C. 1954, on equipment purchased for the business. In 1976, they transferred their sec. 38 property and the other assets of the business to a newly formed corporation in exchange for all the stock in such corporation. They did not transfer the real property and fixtures used in their business, but they leased such assets to the corporation on a year-to-year basis. After the transaction, the corporation continued to operate the same business as had Ps. Held, the…
1Opinion of the Court
OPINION
Simpson, Judge:
The Commissioner determined a deficiency of $24,138.60 in the petitioners’ Federal income tax for 1976. After a concession by the petitioners, the only issue to be decided is whether the investment credits which the petitioners received in prior years were subject to recapture in 1976 under section 47 of the Internal Revenue Code of 19541 when they transferred their farming business to a corporation but retained title to the real estate used therein.
All of the facts have been stipulated, and those facts are so found.
The petitioners, George and Selma Loewen, husband and…
2Cases cited6 opinions
- James Armour, Inc. v. CommissionerUnited States Tax Court · 1964
- R. & J. Furniture Co. v. CommissionerUnited States Tax Court · 1953
- The R. & J. Furniture Company v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1955
- Daniels Buick, Inc. v. CommissionerUnited States Tax Court · 1956
- Daniels Buick, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1958
1 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Borgic v. CommissionerUnited States Tax Court · 1986
- Aderholt Specialty Co. v. CommissionerUnited States Tax Court · 1985
- Borgic v. CommissionerUnited States Tax Court · 1986
- Hudspeth v. CommissionerUnited States Tax Court · 1985
- Loewen v. CommissionerUnited States Tax Court · 1981