- 2 -
After concessions, the issue for decision is whether
petitioner may deduct or must capitalize the expenses of
relocating a portion of its pipeline.1
Background
This case was submitted fully stipulated under Rule 122.2
The stipulation of facts, supplemental stipulation of facts, and
attached exhibits are incorporated herein by this reference.
Petitioner is a corporation, whose principal office was
located in Tulsa, Oklahoma, at the time the petition was filed.
It timely filed its 1991 tax return with the Internal Revenue
Service Center, Austin, Texas.
Petitioner operates a common carrier refined products
pipeline system transporting refined petroleum products in the
States of Illinois, Indiana, and Wisconsin. The system consists
of approximately 335 miles of pipeline. Approximately 25 miles
of the pipeline consists of 16-inch pipe; the remainder consists
of 12-inch or smaller pipe.
Petitioner's pipeline system is located on both private and
public property. Because it is not always possible or
1 If we decide petitioner must capitalize all or some of
these expenses, then petitioner will be entitled to a
corresponding depreciation allowance.
2 Unless otherwise indicated, all section references are to
the Internal Revenue Code in effect for the taxable year at
issue, and all Rule references are to the Tax Court Rules of
Practice and Procedure.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011