Jet Research, Inc. v. Commissioner
United States Tax Court
Held: Reallocation under sec. 61 of 100 percent of the income of a disqualified DISC, which was still subject to a valid DISC election, to its parent corporation was improper because the disqualified DISC was imbued with a business purpose and carried on substantive business activities from which it derived income. Addison International, Inc. v. Commissioner, 90 T.C. 1207 (1988), affd. 887 F.2d 660 (6th Cir. 1989) followed.
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Held: Reallocation under sec. 61 of 100 percent of the income of a disqualified DISC, which was still subject to a valid DISC election, to its parent corporation was improper because the disqualified DISC was imbued with a business purpose and carried on substantive business activities from which it derived income. Addison International, Inc. v. Commissioner, 90 T.C. 1207 (1988), affd. 887 F.2d 660 (6th Cir. 1989) followed. Held further: The fact that the DISC was imbued with a business purpose and carried on substantive business activities does not invalidate respondent's allocation of…
1Opinion of the Court
JET RESEARCH, INC., Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent; JET RESEARCH INTERNATIONAL CORPORATION, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Jet Research, Inc. v. Commissioner
Docket Nos. 39694-84, 39893-84
United States Tax Court
T.C. Memo 1990-463; 1990 Tax Ct. Memo LEXIS 508; 60 T.C.M. (CCH) 613; T.C.M. (RIA) 90463;
August 28, 1990, Filed
Decisions will be entered under Rule 155.
Held: Reallocation under sec. 61 of 100 percent of the income of a disqualified DISC, which was still subject to a valid DISC election, to its parent corporation was improper because…
2Cases cited9 opinions
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Ach v. CommissionerUnited States Tax Court · 1964
- Commissioner v. First Security Bank of Utah, N. A.Supreme Court of the United States · 1972
- Haag v. CommissionerUnited States Tax Court · 1987
- Hospital Corp. of America v. CommissionerUnited States Tax Court · 1983
4 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Summa Holdings v. Comm'r of Internal RevenueCourt of Appeals for the Sixth Circuit · 2017