Philadelphia & Reading Corp. v. United States

Plaintiffs, Philadelphia and Reading Corporation (P&R) and Southern Carbon Corporation, seek to recover overpay-*150merits of federal income taxes and interest for the taxable years 1958 and 1959. The case, which is before the court on cross-motions for summary judgment, involves a question of first impression of whether a corporation which is a transferee of mining property in a transaction described in the Internal Revenue Code, 26 U.S.C. § 351 (1976)1 is entitled to amortize development expenses which the transferor incurred with respect to such property and elected to defer under 26 U.S.C. §…