Borgic v. Commissioner
United States Tax Court
Petitioners incorporated their farm operation in 1974. At that time, they transferred some property to the corporation but retained ownership of certain farm equipment. Petitioners entered into an agreement with the corporation whereby they would lease that equipment and any subsequently acquired farm equipment to the corporation for use in the business. Petitioners claimed investment tax credits for these assets.
Read the full summary
Petitioners incorporated their farm operation in 1974. At that time, they transferred some property to the corporation but retained ownership of certain farm equipment. Petitioners entered into an agreement with the corporation whereby they would lease that equipment and any subsequently acquired farm equipment to the corporation for use in the business. Petitioners claimed investment tax credits for these assets. In 1979, they transferred the farm equipment to the corporation. Held, the transfer of the farm equipment to the corporation constituted a mere change in form of conducting a trade…
1Opinion of the Court
PARR, Judge: *
Respondent determined a deficiency in petitioners’ 1979 Federal income tax return in the amount of $12,765.04. The sole issue for decision is whether petitioners must recapture investment tax credits previously taken for certain farm implements and machinery upon the transfer of such property to petitioners’ wholly owned corporation.
FINDINGS OF FACT
This case was submitted to the Court without trial pursuant to Rule 122.1 The facts have been stipulated and are so found. The stipulation of facts and related exhibits are incorporated herein by this reference.
At the time of filing…
2Cases cited7 opinions
- Laurence M. And Phyllis W. Carlson v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1983
- Carlson v. CommissionerUnited States Tax Court · 1982
- Charles L. Long and Ruth S. Long v. United StatesCourt of Appeals for the Sixth Circuit · 1981
- Ramm v. CommissionerUnited States Tax Court · 1979
- Baker v. United StatesDistrict Court, W.D. Texas · 1975
2 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- Uri v. CommissionerUnited States Tax Court · 1989
- Stahl v. United StatesDistrict Court, E.D. Washington · 2009
- Borgic v. CommissionerUnited States Tax Court · 1986
- Engles v. CommissionerUnited States Tax Court · 1990
- Moudy v. CommissionerUnited States Tax Court · 1990