Union P. R. Co. v. Commissioner
United States Board of Tax Appeals
1. In a consolidated return of affiliated railroad corporations, the cost of intercompany transportation of material used in capital construction must be eliminated from operating expense deduction.
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1. In a consolidated return of affiliated railroad corporations, the cost of intercompany transportation of material used in capital construction must be eliminated from operating expense deduction. Such cost figure, upon the evidence, determined to be 7 mills per ton mile. 2. Section 203, Revenue Act of 1926, is designed, as a general rule, to recognize gain or loss upon the exchange of property and to provide specific exceptions. 3. Exchange of property originally acquired for a proposed new railroad line the construction of which was later abandoned, whereupon the property was held for…
1Opinion of the Court
*385Opinion. — For each year the problem is presented of the proper treatment upon the consolidated return of the transportation by one affiliated corporation of the materials of another used in additions and betterments, the cost of which is capitalized. Unlike the transportation by a railroad corporation of its own men and materials, the transportation for another, even though affiliated under the revenue act, is covered by the published tariff rates and hence the earlier decisions treating of “ transportation for investment — credit ” are not entirely similar. Cf. Great Northern Railroad Co.…
2Cases cited11 opinions
- Helvering v. TaylorSupreme Court of the United States · 1935
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- United States v. LudeySupreme Court of the United States · 1927
- Woolford Realty Co. v. RoseSupreme Court of the United States · 1932
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3Cited by24 opinions
- Merrill v. CommissionerUnited States Tax Court · 1963
- Keith v. CommissionerUnited States Tax Court · 2000
- Margaret v. Dettmers, Estate of Herrick L. Johnston, Deceased, and Margaret v. Dettmers, Individually v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1970
- Bennett's Travel Bureau, Inc. v. CommissionerUnited States Tax Court · 1957
- Baertschi v. CommissionerUnited States Tax Court · 1967
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