LTV Corp. v. Commissioner
United States Tax Court
Petitioner contracted to lease an IBM computer from Boothe Leasing Corp. The computer was on petitioner's premises on or before Dec. 31, 1961. Pursuant to the purchase agreement between Boothe and IBM, the computer was to be installed by IBM on petitioner's premises.
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Petitioner contracted to lease an IBM computer from Boothe Leasing Corp. The computer was on petitioner's premises on or before Dec. 31, 1961. Pursuant to the purchase agreement between Boothe and IBM, the computer was to be installed by IBM on petitioner's premises. Installation of the computer was completed after Dec. 31, 1961. Held, petitioner is entitled to an investment credit under secs. 38 and 48(b)(2), I.R.C. 1954. Held, further, the contract between petitioner and Boothe was in substance as well as form a lease entitling petitioner to rental deductions under sec. 162(a)(3), I.R.C.…
1Opinion of the Court
Sterrett, Judge:
The respondent determined deficiencies in petitioner’s Federal income tax for the calendar years 1962, 1963, and 1964 as follows:
Year Deficiency
1962 _ $49,371.79
1963 _ 2,042,488.96
1964 _ 1,769,443.38
Of the many issues raised by respondent during his audit of petitioner’s tax returns all but three had been settled by the trial date. An additional issue has since been conceded by the respondent in its entirety, leaving two issues to be decided by the Court.
The first issue relates to the applicability of the investment credit provided for by section 38, I.R.C. 1954,2 to one…
2Cases cited13 opinions
- Haggard v. CommissionerUnited States Tax Court · 1955
- D. M. Haggard and Nila Haggard v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1956
- Mills v. CommissionerUnited States Tax Court · 1948
- Northwest Acceptance Corp. v. CommissionerUnited States Tax Court · 1972
- Northwest Acceptance Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1974
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3Cited by19 opinions
- Estate of Thomas v. CommissionerUnited States Tax Court · 1985
- Gefen v. CommissionerUnited States Tax Court · 1986
- Lykes Bros. Steamship v. United StatesUnited States Court of Claims · 1975
- Kansas City S. R. Co. v. CommissionerUnited States Tax Court · 1981
- Swift Dodge v. CommissionerUnited States Tax Court · 1981
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