A. R. Ruppert Plumbing & Heating Co. v. Commissioner
United States Tax Court
Petitioner was incorporated September 27, 1948. It sustained large net operating losses for the fiscal years ended September 30, 1949 and 1950. On October 1, 1950, it organized a subsidiary by transferring a part of its assets to the subsidiary for all of the latter's stock.
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Petitioner was incorporated September 27, 1948. It sustained large net operating losses for the fiscal years ended September 30, 1949 and 1950. On October 1, 1950, it organized a subsidiary by transferring a part of its assets to the subsidiary for all of the latter's stock. Thereafter, the two corporations filed consolidated returns for the fiscal years ended September 30, 1951 through 1956. For the fiscal year ended September 30, 1954 (the taxable year), the group reported a net income, before any net operating loss deduction, of $ 106,898.86. It claimed a net operating loss deduction…
1Opinion of the Court
OPINION.
Arundell, Judge:
Respondent determined a deficiency in income tax for the fiscal year ending September 30, 1954, in the amount of $16,291.34. Instead of a deficiency petitioner claims an overpayment in the amount of $4,544.83.
The only issue is whether income earned by a subsidiary corporation which filed a consolidated income tax return with its parent corporation (petitioner herein) can be offset by a net operating loss deduction resulting from the carrying over of net operating losses incurred by petitioner in taxable years during which the subsidiary corporation was not yet in…
2Cases cited8 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Libson Shops, Inc., v. Koehler, District Director of Internal RevenueSupreme Court of the United States · 1957
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
- Helvering v. Metropolitan Edison Co.Supreme Court of the United States · 1939
- Newmarket Manufacturing Company v. United StatesCourt of Appeals for the First Circuit · 1956
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3Cited by5 opinions
- Nibur Bldg. Corp. v. CommissionerUnited States Tax Court · 1970
- Foster v. CommissionerUnited States Tax Court · 1966
- Calvin v. United StatesDistrict Court, D. Colorado · 1964
- A. R. Ruppert Plumbing & Heating Co. v. CommissionerUnited States Tax Court · 1962
- Nibur Bldg. Corp. v. CommissionerUnited States Tax Court · 1970