Mississippi River & Bonne Terre Ry. v. Commissioner
United States Board of Tax Appeals
1. Petitioner, which had no taxable net income for the year in question, but filed form 1122 in connection with a consolidated return of its parent, held liable on a deficiency in parent's income.
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1. Petitioner, which had no taxable net income for the year in question, but filed form 1122 in connection with a consolidated return of its parent, held liable on a deficiency in parent's income. Regulations 78, art. 15(a). 2. Loss on the sale of a building owned by petitioner, but leased on a long term general lease to its parent, under which it received only the proceeds of the sale, held deductible by petitioner. 3. Where petitioner leased all of its railroad property under a 99-year lease which obligated its parent lessee at the termination of the lease to return the property in…
1Opinion of the Court
*1000 OPINION.
OppeR:
Petitioner, an ahnost wholly owned subsidiary of the Missouri-Illinois Railroad Co., resists respondent’s determination of a deficiency as to it, which is the result of certain adjustments made by respondent in the net income of petitioner’s parent corporation. Petitioner and its affiliate filed consolidated returns.
The issues are three: First, whether under the circumstances respondent was entitled to assert against this petitioner, which had, by itself, no taxable net income, a deficiency arising as a result of the net income of its parent; second, whether the loss on the…
2Cases cited4 opinions
- Weiss v. WeinerSupreme Court of the United States · 1929
- Southern Pacific Co. v. LoweSupreme Court of the United States · 1918
- Charles Ilfeld Co. v. HernandezSupreme Court of the United States · 1934
- McFeely v. CommissionerSupreme Court of the United States · 1935
3Cited by8 opinions
- Harry H. Kem, Jr., and Diane C. Kem, Charles E. Miller and Mary J. Miller v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1970
- Home Group v. CommissionerUnited States Tax Court · 1989
- Dividend Industries, Inc. v. CommissionerUnited States Tax Court · 1987
- Dividend Industries, Inc. v. CommissionerUnited States Tax Court · 1987
- Forrester Box Co. v. CommissionerUnited States Board of Tax Appeals · 1941
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