Central Pa. Sav. Ass'n v. Commissioner
United States Tax Court
During the taxable years at issue, P deducted additions to its bad debt reserve utilizing the percentage of taxable income method set forth in sec. 593(b)(2)(A), I.R.C.
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During the taxable years at issue, P deducted additions to its bad debt reserve utilizing the percentage of taxable income method set forth in sec. 593(b)(2)(A), I.R.C. In its calculations of taxable income for this purpose, P did not take into account net operating losses (NOL's) as provided in sec. 1.593-6A(b)(5)(vi) and (vii), Income Tax Regs.Held: Upon reconsideration, we no longer adhere to our prior holdings that such regulation is invalid; P must take NOL's into account in computing its taxable income under sec. 593(b)(2)(A), I.R.C., as required by such regulation. Georgia Federal Bank…
1Concurrence
Gerber J.,
concurring: Although I concur in the majority’s result, for the reasons expressed in my dissenting opinions in Pacific First Fed. Sav. Bank v. Commissioner, 94 T.C. 101, 117 (1990), and Georgia Fed. Bank v. Commissioner, 98 T.C. 105, 121 (1992), I continue to regard the questioned regulation as valid.
Parker, Jacobs, Wright, Parr, and Ruwe, JJ., agree with this concurring opinion.
2Cases cited2 opinions
- Pacific First Federal Sav. Bank v. CommissionerUnited States Tax Court · 1990
- Georgia Fed. Bank, F.S.B. v. CommissionerUnited States Tax Court · 1992