Intergraph Corp. v. Commissioner
United States Tax Court
Held: Among other things, petitioner, in the year of payment, is not entitled to a claimed sec. 166, I.R.C., bad debt deduction with respect to its payment as guarantor of a Japanese-yen-denominated loan made to a Japanese subsidiary corporation.
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Held: Among other things, petitioner, in the year of payment, is not entitled to a claimed sec. 166, I.R.C., bad debt deduction with respect to its payment as guarantor of a Japanese-yen-denominated loan made to a Japanese subsidiary corporation. Where a guarantor has a right of subrogation against, or a right of reimbursement from, the primary obligor (regardless of whether that right is expressly stated in the guaranty agreement), the provisions of sec. 1.166-9(e)(2), Income Tax Regs., apply, and the guarantor is not entitled to a bad debt deduction until the right of subrogation, or the…
1Opinion of the Court
Swift, Judge:
Respondent determined a deficiency o: $978,567 with respect to Intergraph Corp. (Intergraph) anc its subsidiaries’ consolidated 1987 Federal income taxes.
After concessions, the issues for decision are: (1) The deductibility of a claimed $1,923,103 foreign currency loss and of a claimed $520,432 interest expense; and (2) if the first issue is decided against petitioner, the deductibility in the year of payment of a $6,484,169 bad debt deduction claimed with respect to a payment Intergraph made of a Japanese-yen-denominated debt obligation.
Unless otherwise indicated, all section…
2Cases cited24 opinions
- Putnam v. CommissionerSupreme Court of the United States · 1956
- Riss v. CommissionerUnited States Tax Court · 1971
- Richard R. Riss, Sr. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1973
- Hynes v. CommissionerUnited States Tax Court · 1980
- Santa Anita Consol., Inc. v. CommissionerUnited States Tax Court · 1968
19 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Parekh v. CommissionerUnited States Tax Court · 1998
- Cooper v. Comm'rUnited States Tax Court · 2014
- COBORN v. COMMISSIONERUnited States Tax Court · 1998
- Cooper v. Comm'rUnited States Tax Court · 2014
- Intergraph Corp. v. CommissionerUnited States Tax Court · 1996
5 more not listed; retrieve them via the Exa API.