Spicer Theatre, Inc. v. Commissioner
United States Tax Court
1. Held, respondent's allocation of the income and deductions of the operation of two outdoor theaters by Copley Theatre, Inc., during 1958 and 1959 to Spicer Theatre, Inc., under section 482, I.R.C. 1954, sustained.
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1. Held, respondent's allocation of the income and deductions of the operation of two outdoor theaters by Copley Theatre, Inc., during 1958 and 1959 to Spicer Theatre, Inc., under section 482, I.R.C. 1954, sustained. The stock of the two corporations was owned by the same persons, the theaters were operated with assets of Spicer leased to Copley for a 2-year period for the sole purpose of enabling Copley to use a net operating loss as a carryover, Spicer's employees were used by Copley, the rental fixed was not shown to be fair rental value, and Copley did not take over all of Spicer's…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in these consolidated proceedings as follows:
Petitioner Deficiency
Copley Theatre, Inc.. $13,264.11 1,933.43
Spicer Theatre, Inc_ 5,382.75 6,993.17 1,939.13
The issues for decision are:(1) Whether respondent was correct in allocating to Spicer Theatre, Inc., the income and deductions (exclusive of a net operating loss carryover and a deduction for a franchise tax) reported by Copley Theatre, Inc., for the fiscal years ended January 31,1958, and January 31,1959, and(2) Whether Copley Theatre, Inc., is entitled to a deduction in its fiscal years…
2Cases cited6 opinions
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- Campbell County State Bank, Incorporated, of Herreid, South Dakota v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
- T. v. D. Co. v. CommissionerUnited States Tax Court · 1957
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