Jefferson-Pilot Corp. v. Commissioner
United States Tax Court
P's subsidiary purchased three radio stations for $ 15 million in 1974. P seeks to deduct a portion of the purchase price which it claims is attributable to the FCC broadcast licenses which were transferred pursuant to the sale. Held: An FCC broadcast license constitutes a "franchise" and the FCC retained a "significant power, right, or continuing interest with respect to the subject matter of the franchise" as those terms are used in sec. 1253, I.R.C.
Read the full summary
P's subsidiary purchased three radio stations for $ 15 million in 1974. P seeks to deduct a portion of the purchase price which it claims is attributable to the FCC broadcast licenses which were transferred pursuant to the sale. Held: An FCC broadcast license constitutes a "franchise" and the FCC retained a "significant power, right, or continuing interest with respect to the subject matter of the franchise" as those terms are used in sec. 1253, I.R.C. A ratable portion of the purchase price attributable to the licenses is therefore deductible under sec. 1253(d)(2), I.R.C.
1Opinion of the Court
OPINION
RUWE, Judge:
Respondent determined deficiencies in petitioner's Federal income tax as follows:
TYE Deficiency
Dec. 31, 1969 $177,970
Dec. 31, 1970 217,101
Dec. 31, 1971 926,035
Dec. 31, 1972 1,168,892
Dec. 31, 1974 74,096
2,564,094
Pursuant to the agreement of the parties, all issues contained in the statutory notice of deficiency related to the 1969, 1970, 1971, and 1972 tax years have been settled. With respect to the 1974 tax year, petitioner concedes the worthless stock deduction related to Jefferson-Pilot Fire & Casualty Co.'s $100,000 investment and Jefferson-Pilot Title Insurance Co.'s…
2Cases cited44 opinions
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- Red Lion Broadcasting Co. v. Federal Communications CommissionSupreme Court of the United States · 1969
- Federal Communications Commission v. Pottsville Broadcasting Co.Supreme Court of the United States · 1940
- Bank of Augusta v. EarleSupreme Court of the United States · 1839
- Federal Communications Commission v. Sanders Bros. Radio StationSupreme Court of the United States · 1940
39 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Ohio Cellular Rsa Ltd. Partnership v. Board of Public WorksWest Virginia Supreme Court · 1996
- Canterbury v. CommissionerUnited States Tax Court · 1992
- Deseret Management Corporation v. United StatesUnited States Court of Federal Claims · 2013
- Jefferson-Pilot Corporation and Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1993
- Stokely USA, Inc. v. CommissionerUnited States Tax Court · 1993
7 more not listed; retrieve them via the Exa API.