Unionbancal Corp. v. Commissioner
United States Tax Court
In 1984, P was part of a controlled group of corporations. On its 1984 Federal income tax return, P reported an $ 11.6 million loss resulting from P's sale of a loan portfolio to its United Kingdom parent corporation, SC-UK. United States and United Kingdom competent authorities subsequently determined that the actual loss was $ 87.9 million. Pursuant to a settlement agreement for the 1984 taxable year, R allowed P to deduct $ 2.3 million of the loss on its 1984 return.
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In 1984, P was part of a controlled group of corporations. On its 1984 Federal income tax return, P reported an $ 11.6 million loss resulting from P's sale of a loan portfolio to its United Kingdom parent corporation, SC-UK. United States and United Kingdom competent authorities subsequently determined that the actual loss was $ 87.9 million. Pursuant to a settlement agreement for the 1984 taxable year, R allowed P to deduct $ 2.3 million of the loss on its 1984 return. The remaining loss was deferred pursuant to sec. 267(f), I.R.C. R determined that under sec. 1.267(f)-1T(c)(6), Temporary…
1Opinion of the Court
Thornton, Judge:
Respondent determined a deficiency in petitioner’s corporate Federal income tax for the taxable year ending October 31, 1988, in the amount of $1,676,690. The only issue before the Court is whether respondent erred in refusing to allow petitioner a deduction in the amount of $85,612,820 (representing losses previously deferred pursuant to section 267(f) and arising from petitioner’s 1984 sale of certain loans to a member of the same controlled group) when petitioner left its controlled group in 1988.1 This question turns on the validity of section 1.267(f)-1T(c)(6), Temporary…
2Cases cited38 opinions
- Chevron U. S. A. Inc. v. Natural Resources Defense Council, Inc.Supreme Court of the United States · 1984
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Automobile Club of Mich. v. CommissionerSupreme Court of the United States · 1957
- Batterton v. FrancisSupreme Court of the United States · 1977
- National Muffler Dealers Assn., Inc. v. United StatesSupreme Court of the United States · 1979
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3Cited by19 opinions
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- Square D Co. v. Comm'rUnited States Tax Court · 2002
- Microsoft Corp. v. CommissionerUnited States Tax Court · 2000
- Unionbancal Corp. v. CommissionerCourt of Appeals for the Ninth Circuit · 2002
- Unionbancal Corporation v. Commissioner Of Internal RevenueCourt of Appeals for the Ninth Circuit · 2002
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