Faulkner v. Commissioner
United States Tax Court
X, a corporate automobile lessor, elected, under sec. 48(d), I.R.C. 1954, to pass Investment Tax Credits (ITC) through to S, a subch. S corporation, and the ITC was claimed by P, a shareholder of S. X met all the requirements under sec. 48(d), I.R.C. 1954, and the regulations thereunder, for a valid election. Respondent contends that S must independently qualify for the ITC, either as a sublessor or lessee.
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X, a corporate automobile lessor, elected, under sec. 48(d), I.R.C. 1954, to pass Investment Tax Credits (ITC) through to S, a subch. S corporation, and the ITC was claimed by P, a shareholder of S. X met all the requirements under sec. 48(d), I.R.C. 1954, and the regulations thereunder, for a valid election. Respondent contends that S must independently qualify for the ITC, either as a sublessor or lessee. Held, a qualified corporate lessor may, under a sec. 48(d), I.R.C. 1954, election pass ITC through to a corporate or noncorporate lessee or sublessor, who does not independently qualify.
1Opinion of the Court
OPINION
GERBER, Judge:
This case was submitted fully stipulated pursuant to Rule 122.1 The stipulation of facts and attached exhibits are incorporated herein by reference. We are asked to consider whether sections 46(e)(3) and 46(c)(8) apply to restrict the passage of investment tax credit from a “qualified” corporate lessor to a “subchapter S” corporation or noncorporate lessee/sublessor.2
Petitioners are Henry Faulkner, Jr. (petitioner), and Elaine Faulkner,3 individuals with legal residence at the time of filing the petition in Huntingdon Valley, Pennsylvania, and Supreme Leasing Co., Inc.…
2Cases cited13 opinions
- Estate of Sanford v. CommissionerSupreme Court of the United States · 1939
- United Telecommunications, Inc. (Formerly United Utilities, Incorporated) v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1978
- Catron v. CommissionerUnited States Tax Court · 1968
- Ridder v. CommissionerUnited States Tax Court · 1981
- Comdisco, Inc. v. United StatesCourt of Appeals for the Seventh Circuit · 1985
8 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Rybak v. CommissionerUnited States Tax Court · 1988
- Soriano v. CommissionerUnited States Tax Court · 1988
- Faulkner v. CommissionerUnited States Tax Court · 1987
- Morrow v. CommissionerUnited States Tax Court · 1988
- Rybak v. CommissionerUnited States Tax Court · 1988
1 more not listed; retrieve them via the Exa API.