Faulkner v. Commissioner
United States Tax Court
X, a corporate automobile lessor, elected, under sec. 48(d), I.R.C. 1954, to pass Investment Tax Credits (ITC) through to S, a subch. S corporation, and the ITC was claimed by P, a shareholder of S. X met all the requirements under sec. 48(d), I.R.C. 1954, and the regulations thereunder, for a valid election. Respondent contends that S must independently qualify for the ITC, either as a sublessor or lessee.
Read the full summary
X, a corporate automobile lessor, elected, under sec. 48(d), I.R.C. 1954, to pass Investment Tax Credits (ITC) through to S, a subch. S corporation, and the ITC was claimed by P, a shareholder of S. X met all the requirements under sec. 48(d), I.R.C. 1954, and the regulations thereunder, for a valid election. Respondent contends that S must independently qualify for the ITC, either as a sublessor or lessee. Held, a qualified corporate lessor may, under a sec. 48(d), I.R.C. 1954, election pass ITC through to a corporate or noncorporate lessee or sublessor, who does not independently qualify.
1Opinion of the Court
Henry Faulkner, Jr., and Elaine Faulkner and Supreme Leasing Company, Inc., Petitioners v. Commissioner of Internal Revenue, Respondent
Faulkner v. Commissioner
Docket No. 17841-84
United States Tax Court
88 T.C. 623; 1987 U.S. Tax Ct. LEXIS 32; 88 T.C. No. 33;
March 17, 1987. March 17, 1987, Filed
Decision will be entered under Rule 155.
X, a corporate automobile lessor, elected, under sec. 48(d), I.R.C. 1954, to pass Investment Tax Credits (ITC) through to S, a subch. S corporation, and the ITC was claimed by P, a shareholder of S. X met all the requirements under sec. 48(d), I.R.C. 1954, and the…
2Cases cited14 opinions
- Estate of Sanford v. CommissionerSupreme Court of the United States · 1939
- United Telecommunications, Inc. (Formerly United Utilities, Incorporated) v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1978
- Catron v. CommissionerUnited States Tax Court · 1968
- Ridder v. CommissionerUnited States Tax Court · 1981
- Comdisco, Inc. v. United StatesCourt of Appeals for the Seventh Circuit · 1985
9 more not listed; retrieve them via the Exa API.