VGS Corp. v. Commissioner
United States Tax Court
The predecessor of VGS, New Southland, acquired all the stock of a corporation and certain assets of a partnership which operated together as a going concern. Subsequently, New Southland merged with Vermont Gas Systems, Inc., wherein Vermont survived and the name was changed to VGS. VGS claimed deductions for depreciation based on allocation of a substantial portion of the purchase price to depreciable assets.
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The predecessor of VGS, New Southland, acquired all the stock of a corporation and certain assets of a partnership which operated together as a going concern. Subsequently, New Southland merged with Vermont Gas Systems, Inc., wherein Vermont survived and the name was changed to VGS. VGS claimed deductions for depreciation based on allocation of a substantial portion of the purchase price to depreciable assets. Held, no goodwill was acquired as a part of the acquisition of the stock of the corporation and partnership assets. Held, further, going-concern value was acquired in that acquisition…
1Opinion of the Court
Goffe, Judge:
The Commissioner determined deficiencies in petitioner’s Federal income tax as follows:
Taxable Docket No. year ended Deficiency
6897-74. 7/31/66 $120,128.27
7/31/67 122,451.54
12/31/67 46,129.76
6896-74. 12/31/68 525,344.12
9916-74. 12/31/69 177,479.59
12/31/70 138,605.49
12/31/71 280,445.89
Upon joint motion of the parties, these cases were consolidated for trial, briefing, and opinion. Concessions having been made, only the following issues remain for our consideration:(1) Whether any part of the lump-sum purchase price paid by petitioner’s predecessor in acquisition of all the capital…
2Cases cited23 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Los Angeles Gas & Electric Corp. v. Railroad CommissionSupreme Court of the United States · 1933
- Jack Daniel Distillery, Lem Motlow, Prop., Inc. v. The United StatesUnited States Court of Claims · 1967
- Tracy v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1931
- American Pipe & Steel Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1957
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