Byrne v. Commissioner
United States Tax Court
Petitioners were shareholders of X corporation, which owned an office building. On June 6, 1969, the president of X, who was also a shareholder, met with one of the other shareholders to discuss the liquidation of X in kind and sent a memorandum of that meeting to the other shareholders. On June 23, 1969, all the shareholders met and agreed to proceed promptly with the liquidation.
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Petitioners were shareholders of X corporation, which owned an office building. On June 6, 1969, the president of X, who was also a shareholder, met with one of the other shareholders to discuss the liquidation of X in kind and sent a memorandum of that meeting to the other shareholders. On June 23, 1969, all the shareholders met and agreed to proceed promptly with the liquidation. On Dec. 31, 1969, X was liquidated and its assets were transferred to the shareholders, who thereafter held the property as partners. Held, there was not "a written contract for the acquisition of [sec. 1250]…
1Opinion of the Court
OPINION
Under section 167, a taxpayer is permitted to compute depreciation on tangible property by the declining balance method, using a rate not exceeding twice the straight line rate. For used section 1250 property acquired after July 24, 1969, however, this privilege is rescinded by section 167(j)(4).3 Petitioners do not deny that the building in question was used section 1250 property acquired after July 24, 1969. They claim relief under section 167(j)(6)(C), which provides:
Paragraphs (4) and (5) shall not apply in the case of section 1250 property acquired after July 24, 1969, pursuant to…
2Cases cited11 opinions
- Bingler v. JohnsonSupreme Court of the United States · 1969
- Commissioner v. BrownSupreme Court of the United States · 1965
- Commissioner v. National Alfalfa Dehydrating & Milling Co.Supreme Court of the United States · 1974
- Helvering v. Northwest Steel Rolling Mills, Inc.Supreme Court of the United States · 1940
- Schultz v. CommissionerUnited States Tax Court · 1968
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3Cited by2 opinions
- Byrne v. CommissionerUnited States Tax Court · 1975
- Napp Sys., Inc. v. CommissionerUnited States Tax Court · 1993