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Rule references are to the Tax Court Rules of Practice and
Procedure.
The issues to be decided concern the appropriate recovery
classes (for tax years ended 1985 and 1986) or appropriate
recovery periods (for tax years ended 1987 and 1988) for certain
tangible property that petitioners placed in service during those
years. To decide whether petitioners utilized the proper
recovery classes or periods in calculating their claimed
depreciation deductions for those taxable years, we must decide
(1) whether the tests developed under prior law for purposes of
the investment tax credit are applicable, and, if so (2) whether
the respective properties constitute section 1245 personal
property or section 1250 real property pursuant to those tests.
FINDINGS OF FACT
Some of the facts have been stipulated for trial pursuant to
Rule 91. The parties' stipulations of fact are incorporated
herein by reference and are found as facts in the instant case.
Petitioners were members of an affiliated group of
corporations whose common parent was Hospital Corporation of
America (HCA), which was incorporated under the laws of the State
of Tennessee.2 HCA maintained its principal offices in
2 On Feb. 10, 1994, HCA was merged with and into Galen
Healthcare, Inc., a subsidiary of Columbia Healthcare Corp. of
Louisville, Kentucky, and the subsidiary changed its name to HCA-
Hospital Corp. of America. On that same date, the parent changed
(continued...)
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