Superior Coach of Florida, Inc. v. Commissioner
United States Tax Court
In 1974, Z, a majority shareholder and officer of P, purchased all of the shares of T Corp. and merged T into P. P wrote down the amount of ending inventory for such year. On audit, the Commissioner determined that the writedown was improper and revalued the amount of such ending inventory.
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In 1974, Z, a majority shareholder and officer of P, purchased all of the shares of T Corp. and merged T into P. P wrote down the amount of ending inventory for such year. On audit, the Commissioner determined that the writedown was improper and revalued the amount of such ending inventory. Held, P may not utilize T's net operating loss since the transaction did not qualify as a reorganization within the meaning of sec. 368(a)(1), I.R.C. 1954. Held, further, the Commissioner's revaluation of P's ending inventory constituted a change in P's method of accounting, requiring an adjustment under…
1Opinion of the Court
Simpson, Judge:
The Commissioner determined a deficiency of $54,761 in the petitioner’s Federal income tax for 1974. After concessions by the petitioner, the issues for decision are: (1) Whether the petitioner may utilize a net operating loss acquired pursuant to a statutory merger; and (2) whether the Commissioner’s revaluation of the petitioner’s ending inventory constituted a change of the petitioner’s accounting method within the meaning of section 481 of the Internal Revenue Code of 1954.1
FINDINGS OF FACT
Some of the facts have been stipulated, and those facts are so found.
The petitioner,…
2Cases cited30 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Helvering v. CliffordSupreme Court of the United States · 1940
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Thor Power Tool Co. v. CommissionerSupreme Court of the United States · 1979
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
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- Huffman v. CommissionerCourt of Appeals for the Sixth Circuit · 2008
- Huffman v. Comm'rUnited States Tax Court · 2006
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