Wood County Tel. Co. v. Commissioner
United States Tax Court
In 1961, petitioner, a telephone company, purchased the entire assets of a neighboring telephone company, Rudolph, in order to expand its territory. The purchase was conditioned upon petitioner obtaining an order from the State regulatory agency allowing it to furnish telephone service to the area formerly serviced by Rudolph. Such an order was granted to petitioner for an indeterminate period.
Read the full summary
In 1961, petitioner, a telephone company, purchased the entire assets of a neighboring telephone company, Rudolph, in order to expand its territory. The purchase was conditioned upon petitioner obtaining an order from the State regulatory agency allowing it to furnish telephone service to the area formerly serviced by Rudolph. Such an order was granted to petitioner for an indeterminate period. At the time of purchase, petitioner intended to abandon most of the former Rudolph assets in order to convert the former Rudolph facility from a manual to a dial system. Held: 1. Upon converting the…
1Opinion of the Court
Withey, Judge/
Respondent determined a deficiency in petitioner’s corporate income tax for the calendar year 1962 in the amount of $29,710.78.
The principal issue presented is whether petitioner is entitled to an abandonment loss under section 165 of the Internal Revenue Code of 19541 in the amount of $57,136.12 in connection with its acquisition of the Rudolph Telephone Co. (hereinafter referred to as Rudolph) in 1961 and its subsequent disposition of most of Rudolph’s manual telephone equipment in 1962.
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
Petitioner…
2Cases cited7 opinions
- McDonald v. CommissionerSupreme Court of the United States · 1944
- Dresser v. United StatesUnited States Court of Claims · 1932
- Lynchburg Nat'l Bank & Trust Co. v. CommissionerUnited States Tax Court · 1953
- Providence Journal Co. v. BroderickCourt of Appeals for the First Circuit · 1939
- Hillside Nat'l Bank v. CommissionerUnited States Tax Court · 1961
2 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Landerman v. CommissionerUnited States Tax Court · 1970
- J. B. N. Telephone Company, Inc. v. United StatesCourt of Appeals for the Tenth Circuit · 1981
- Vander Hoek v. CommissionerUnited States Tax Court · 1968
- Argo v. CommissionerUnited States Tax Court · 1982
- Cleveland Electric Illuminating Co. v. United StatesUnited States Court of Claims · 1984
5 more not listed; retrieve them via the Exa API.