Canterbury v. Commissioner
United States Tax Court
Ps purchased existing McDonald's restaurant operations, including McDonald's franchise rights, from McDonald's franchisees. In each instance, the purchase price was in excess of the value of the tangible assets purchased. Ps allocated the portion of the purchase price which exceeded the value of the tangible assets to the franchise. Ps amortized the amount which they attributed to the franchise pursuant to sec. 1253(d)(2)(A), I.R.C.
Read the full summary
Ps purchased existing McDonald's restaurant operations, including McDonald's franchise rights, from McDonald's franchisees. In each instance, the purchase price was in excess of the value of the tangible assets purchased. Ps allocated the portion of the purchase price which exceeded the value of the tangible assets to the franchise. Ps amortized the amount which they attributed to the franchise pursuant to sec. 1253(d)(2)(A), I.R.C. R determined that Ps allocated too much of the cost of intangible assets to the franchise, that most of the cost of intangible assets should be allocated to…
1Opinion of the Court
Ruwe, Judge:
Petitioners are McDonald’s franchisees in the San Diego, California, and Cleveland, Ohio, areas. Petitioners each acquired their franchises as part of the purchase of an existing McDonald’s restaurant operation from either a McDonald’s franchisee or from one of McDonald’s wholly owned subsidiaries, collectively referred to as McDonald’s Operating Co. (McOpCo).2 These purchases were made during the period 1972 to 1984. Petitioners each allocated a portion of the purchase price to the tangible assets which they purchased. They allocated the remaining purchase price to the McDonald’s…
2Cases cited36 opinions
- Arkansas v. OklahomaSupreme Court of the United States · 1992
- Rowan Cos. v. United StatesSupreme Court of the United States · 1981
- Hanover Bank v. CommissionerSupreme Court of the United States · 1962
- Helvering v. Bankline Oil Co.Supreme Court of the United States · 1938
- Richard M. Boe and Mary Lots Boe v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
31 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Nestle Holdings v. CommissionerUnited States Tax Court · 1995
- Stokely USA, Inc. v. CommissionerUnited States Tax Court · 1993
- International Multifoods Corp. v. CommissionerUnited States Tax Court · 1997
- Clark v. America's Favorite Chicken Co.District Court, E.D. Louisiana · 1996
- Hess v. Comm'rUnited States Tax Court · 2003
9 more not listed; retrieve them via the Exa API.