Walt Disney, Inc. v. Commissioner
United States Tax Court
Corporation P and the shareholders of corporation R entered into an agreement to enable P to acquire certain R assets by means of an exchange of stock, with P to receive all the stock of R. Conditions precedent to closing the transaction were that R would transfer to a wholly owned subsidiary all of the assets not wanted by P and that R would distribute the stock of this subsidiary to the R shareholders.
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Corporation P and the shareholders of corporation R entered into an agreement to enable P to acquire certain R assets by means of an exchange of stock, with P to receive all the stock of R. Conditions precedent to closing the transaction were that R would transfer to a wholly owned subsidiary all of the assets not wanted by P and that R would distribute the stock of this subsidiary to the R shareholders. On December 1, 1981, R transferred the assets unwanted by P to newly formed corporation FS and received in exchange the FS stock. Some of the transferred assets had unexpired useful lives for…
1Opinion of the Court
OPINION
FEATHERSTON, Judge:
Respondent determined a deficiency in the amount of $453,197 in the Federal income tax of Retlaw Enterprises, Inc. (Retlaw), of which Walt Disney Inc. (petitioner) is a successor in interest. The only issue remaining for decision is whether Retlaw is required to recapture investment tax credit for 1982 in an amount of $483,918 as a result of the transfer of certain assets to a newly formed subsidiary corporation.
All the facts are stipulated.
Background
Petitioner’s principal office was located in Burbank, California, at the time its petition was filed.
During the…
2Cases cited12 opinions
- Lederer v. StocktonSupreme Court of the United States · 1922
- Penrod v. CommissionerUnited States Tax Court · 1987
- Woods Inv. Co. v. CommissionerUnited States Tax Court · 1985
- Henry C. Beck Builders, Inc. v. CommissionerUnited States Tax Court · 1964
- Esmark, Inc. v. CommissionerUnited States Tax Court · 1988
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3Cited by13 opinions
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- Walt Disney Incorporated v. Commissioner, Internal Revenue ServiceCourt of Appeals for the Ninth Circuit · 1993
- J.E. Seagram Corp. v. CommissionerUnited States Tax Court · 1995
- Trinova Corp. v. CommissionerUnited States Tax Court · 1997
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