United Telecommunications, Inc. v. Commissioner
United States Tax Court
Petitioner's subsidiaries constructed their own telephone and power plant properties which qualify as "new section 38 property" as defined by sec. 48(b). Held, for purposes of determining qualified investment pursuant to sec. 46(c)(1)(A) on which the sec. 38 credit against tax is calculated, the basis of the self-constructed new sec. 38 property includes depreciation sustained with respect to a constructing asset on which no sec. 38 credit has been allowed.
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Petitioner's subsidiaries constructed their own telephone and power plant properties which qualify as "new section 38 property" as defined by sec. 48(b). Held, for purposes of determining qualified investment pursuant to sec. 46(c)(1)(A) on which the sec. 38 credit against tax is calculated, the basis of the self-constructed new sec. 38 property includes depreciation sustained with respect to a constructing asset on which no sec. 38 credit has been allowed. Held, further, sec. 1.46-3(c)(1), Income Tax Regs., is invalid to the limited extent that it excludes from the basis of the…
1Opinion of the Court
OPINION
The sole issue presented for our decision is one of first impression. It is (for purposes of computing the qualified investment on which the section 38 credit against tax is calculated): is the petitioner entitled to include in the basis of self-constructed telephone and power plant properties that qualify as new section 38 property the capitalized depreciation of property used in its construction?2
United contends that the term “basis,” as used in section 46(c)(1)(A)3 with respect to the “qualified investment” upon which section 38 allows a credit against income tax, and as used in…
2Cases cited16 opinions
- United States v. United Mine Workers of AmericaSupreme Court of the United States · 1947
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- Manhattan General Equipment Co. v. Commissioner of Internal RevenueSupreme Court of the United States · 1936
- United States v. PriceSupreme Court of the United States · 1960
- Fawcus MacHine Co. v. United StatesSupreme Court of the United States · 1931
11 more not listed; retrieve them via the Exa API.
3Cited by39 opinions
- United Telecommunications, Inc. (Formerly United Utilities, Incorporated) v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1978
- Miller v. CommissionerUnited States Tax Court · 1985
- Peninsula Steel Products & Equipment Co. v. CommissionerUnited States Tax Court · 1982
- Zuanich v. CommissionerUnited States Tax Court · 1981
- Washington v. CommissionerUnited States Tax Court · 1981
34 more not listed; retrieve them via the Exa API.