City of Columbus , Ohio - Page 4

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          by virtue of the Tax Reform Act of 1986.  It argues that the                
          definition of investment-type property as defined in the 1986               
          Code applies only to "advance refund" bonds and that the 1994               
          BANS and the bonds at issue herein are not such bonds.                      
               Particularly in the absence of any legislative history,1 we            
          are unwilling to conclude that the definition of investment-type            
          property set forth in the transitional section 1314(h) of TAMRA             
          1988 should apply to an advance refund but not to a prepayment.             
          Both types of financing accomplish the same objective, namely to            
          obtain a financial advantage from the interim use of borrowed               
          funds in the case of an advance refunding in one case or from a             
          discount by payment in advance of the due date in the other.  We            
          are reinforced in this view by section 1.148-1(b), Income Tax               
          Regs., dealing with prepayments, see City of Columbus v.                    
          Commissioner, 106 T.C. at 331-332, and the absence of any                   
          reference therein to any transitional exception.  See also sec.             
          1.148-11, Income Tax Regs.; sec. 1.148-11T, Temporary Income Tax            
          Regs., 59 Fed. Reg. 24046 (May 10, 1994).  This regulation, with            
          its specific recognition of realistically defined exceptions to             
          its application, is consistent with the clearly expressed                   
          concerns of Congress in 1986, discussed in our prior opinion,               
          City of Columbus v. Commissioner, 106 T.C. at 331, and again in             

          1  Neither petitioner nor our own research has revealed any such            

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