Carolina, C. & O. R. Co. v. Commissioner
United States Tax Court
1. P, a common carrier by rail, leased all of its railroad properties on a net basis for 999 years. The lessee purchased and retired outstanding bonds of P, and the amounts expended by the lessee were reflected in open accounts that P would, subject to other adjustments, be required to satisfy at the end of the 999-year lease.
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1. P, a common carrier by rail, leased all of its railroad properties on a net basis for 999 years. The lessee purchased and retired outstanding bonds of P, and the amounts expended by the lessee were reflected in open accounts that P would, subject to other adjustments, be required to satisfy at the end of the 999-year lease. Held, the indebtedness to the lessees differs so fundamentally from the original bond obligation that P may not treat one as a substitute for the other. 2. P claimed an investment credit for replacement property and additions and betterments (A-B property) constructed…
1Opinion of the Court
Carolina, Clinchfield & Ohio Railway Company, Petitioner v. Commissioner of Internal Revenue, Respondent
Carolina, C. & O. R. Co. v. Commissioner
Docket No. 10761-78
United States Tax Court
82 T.C. 888; 1984 U.S. Tax Ct. LEXIS 62; 82 T.C. No. 68;
June 4, 1984, Filed
Decision will be entered under Rule 155.
1. P, a common carrier by rail, leased all of its railroad properties on a net basis for 999 years. The lessee purchased and retired outstanding bonds of P, and the amounts expended by the lessee were reflected in open accounts that P would, subject to other adjustments, be required to satisfy at…
2Cases cited38 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- James v. United StatesSupreme Court of the United States · 1961
- Crane v. CommissionerSupreme Court of the United States · 1947
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
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