Kahler Corp. v. Commissioner
United States Tax Court
Petitioner, prior to and during the taxable years in question, advanced funds to its subsidiaries for working capital purposes. The advances bore no interest. Respondent determined, pursuant to the authority of sec. 482 and the regulations thereunder, that interest income should be allocated to petitioner in an amount equal to 5 percent of the balances on the advances outstanding at the end of each month during the taxable period.
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Petitioner, prior to and during the taxable years in question, advanced funds to its subsidiaries for working capital purposes. The advances bore no interest. Respondent determined, pursuant to the authority of sec. 482 and the regulations thereunder, that interest income should be allocated to petitioner in an amount equal to 5 percent of the balances on the advances outstanding at the end of each month during the taxable period. Held, the application of sec. 482 and the regulations thereunder to impute interest income to petitioner where the advances did not represent transactions out of…
1Opinion of the Court
Ikwin, Judge:
Respondent determined a deficiency in petitioner’s income taxes for the years 1965 and 1966 in the amounts of $85,434.31 and $90,105.22, respectively. Because of concessions stipulated by both parties prior to trial, only one issue with respect to the application of section 482 remains for decision. A computation under Rule 50 will be necessary to reflect the pretrial concessions and the ultimate resolution of the remaining issue in the case.
FINDINGS OF FACT
Some of the facts have been stipulated. These stipulated facts and the exhibits attached thereto are incorporated herein by…
2Cases cited22 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Massachusetts v. United StatesSupreme Court of the United States · 1948
- Grenada Industries, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1953
- Ach v. CommissionerUnited States Tax Court · 1964
- Ballentine Motor Co., Inc., Ballentine's, and Ballentine Motors, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1963
17 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- Pagel, Inc. v. CommissionerUnited States Tax Court · 1988
- Latham Park Manor, Inc. v. CommissionerUnited States Tax Court · 1977
- The Kahler Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1973
- R. T. French Co. v. CommissionerUnited States Tax Court · 1973
- Edwards v. CommissionerUnited States Tax Court · 1976
19 more not listed; retrieve them via the Exa API.