PNC Bancorp, Inc. v. Commissioner
United States Tax Court
As a result of mergers, P succeeded to the interests of two banks. During the years in issue, the banks' primary source of revenue was interest charged on loans. In the process of making loans, the banks incurred costs for property reports, credit reports, appraisals, recording security interests, and salaries and benefits to bank employees. The lives of the loans extended beyond the year in which the expenditures were incurred.
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As a result of mergers, P succeeded to the interests of two banks. During the years in issue, the banks' primary source of revenue was interest charged on loans. In the process of making loans, the banks incurred costs for property reports, credit reports, appraisals, recording security interests, and salaries and benefits to bank employees. The lives of the loans extended beyond the year in which the expenditures were incurred. For financial accounting purposes, loan origination expenditures related to completed loans were capitalized and amortized over the life of the loans. For Federal tax…
1Opinion of the Court
Ruwe, Judge:
These consolidated cases involve deficiencies determined by respondent as follows:
First National Pennsylvania Corp. Docket Nos. 16002-95 and 16003-95
Year Deficiency
$101,785 00 00 05
978 o 05 05 i-q
United, Federal Bancorp, Inc. Docket Nos. 16109-96 and 16110-96
Year Deficiency
1990 . $7,863
1991 . 10,236
1992 . 18,885
1993 . 7,659
The sole issue for decision is whether loan origination expenditures were ordinary and necessary business expenses properly deductible under section 162(a)3 or whether they are required to be capitalized under section 263.
FINDINGS OF FACT
Some of the facts have…
2Cases cited27 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Indopco, Inc. v. CommissionerSupreme Court of the United States · 1992
- Old Colony Railroad v. CommissionerSupreme Court of the United States · 1932
- Thor Power Tool Co. v. CommissionerSupreme Court of the United States · 1979
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3Cited by16 opinions
- FMR CORP. v. COMMISSIONERUnited States Tax Court · 1998
- Pnc Bancorp, Inc., Successor to First National Pennsylvania Corporation v. Commissioner of Internal Revenue (Tax Court No. 95-16002) Pnc Bancorp, Inc., Transferee of Assets of First National Pennsylvania Corporation v. Commissioner of Internal Revenue (Tax Court No. 95-16003) Pnc Bancorp, Inc., Successor to United Federal Bancorp, Inc., and Subsidiaries v. Commissioner of Internal Revenue (Tax Court No. 96-16109) Pnc Bancorp, Inc., Transferee of Assets of United Federal Bancorp, Inc., and Subsidiaries v. Commissioner of Internal Revenue (Tax Court No. 96-16110) Pnc Bancorp, Inc., as (I) Successor to First National Pennsylvania Corporation, (Ii) Transferee of Assets of First National Pennsylvania Corporation, (Iii) Successor to United Federal Bancorp, Inc., and Subsidiaries, and (Iv) Transferee of Assets of United Federal Bancorp, Inc., and SubsidiariesCourt of Appeals for the First Circuit · 2000
- Norwest Corp. v. CommissionerUnited States Tax Court · 1999
- Lychuk v. Comm'rUnited States Tax Court · 2001
- PNC Bancorp Inc. v. IRS CommissionerCourt of Appeals for the Third Circuit · 2000
11 more not listed; retrieve them via the Exa API.