Budget Films, Inc. v. Commissioner
United States Tax Court
P rented films to the general public. P acquired a film for rental in the United States that was or may have been shown in Mexico. Held, the film is not new sec. 38 property. Fife v. Commissioner, 82 T.C. 1, 15 (1984), followed. P also compiled for rental, reels of film composed of individual film segments previously exhibited publicly, although in a different format.
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P rented films to the general public. P acquired a film for rental in the United States that was or may have been shown in Mexico. Held, the film is not new sec. 38 property. Fife v. Commissioner, 82 T.C. 1, 15 (1984), followed. P also compiled for rental, reels of film composed of individual film segments previously exhibited publicly, although in a different format. The segments (cartoons and short subjects, musical variety entertainment, and other footage) were spliced together and compiled and distributed as packages. Held, these modifications, without more, do not create "reconstructed…
1Opinion of the Court
Wilbur, Judge:
Respondent determined deficiencies of $5,949 in petitioner’s Federal income taxes for the taxable year ended April 30, 1977, and of $9,240 for the taxable year ended April 30, 1978.
After concessions by both parties, the issue for decision is whether petitioner is entitled to claim the investment tax credit under section dSCk)1 with respect to various motion picture films. Specifically, we must address ■ the following issues:(1) Whether the films constitute "new section 38 property”;(2) Whether the films are "qualified films”; that is, whether they were created "primarily for use…
2Cases cited4 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Fife v. CommissionerUnited States Tax Court · 1984
- Goodson-Todman Enterprises, Ltd. v. CommissionerUnited States Tax Court · 1985
- Cosby v. United StatesUnited States Court of Claims · 1985
3Cited by5 opinions
- William H. Cosby, Jr., and Camille O. Cosby v. The United States, Jack Barry Productions, Inc. v. The United StatesCourt of Appeals for the Federal Circuit · 1986
- Apis Productions, Inc. v. CommissionerUnited States Tax Court · 1986
- Apis Productions, Inc. v. CommissionerUnited States Tax Court · 1986
- Budget Films, Inc. v. CommissionerUnited States Tax Court · 1985
- Sterenbuch v. CommissionerUnited States Tax Court · 1991