Norwest Corporation and Subsidiaries, Successor in Interest to United Banks of Colorado, Inc., and Subsidiaries, et al. - Page 2

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               constructing the Atrium under sec. 165(a), I.R.C.                      
               Held:  P may not allocate the cost of constructing the                 
               Atrium to the bases of the adjoining properties because                
               the basic purpose of the Atrium was not the enhancement                
               of the adjoining properties so as to induce sales of                   
               those properties.  The basic purpose test enunciated in                
               Estate of Collins v. Commissioner, 31 T.C. 238 (1958),                 
               and subsequent cases, is applicable, but the Atrium                    
               does not qualify under that test.  Held, further, P has                
               failed to establish a loss equal to the cost of                        
               constructing the Atrium pursuant to sec. 1.165-1(b) and                
               (d)(1), Income Tax Regs., and, therefore, is not                       
               entitled to a deduction under sec. 165(a), I.R.C.                      
                                         II.                                          
                    Pursuant to various agreements (the 1988 Atrium                   
               Transaction), a member of the UBC affiliated group                     
               (LBC) sold an undivided 48-percent interest in the                     
               Atrium and certain related property, and another member                
               of the UBC affiliated group (UBD) agreed to lease the                  
               Atrium and certain related property from LBC and                       
               another party.  The UBC affiliated group reported the                  
               1988 Atrium Transaction as a sale and leaseback for                    
               Federal income tax purposes.  Held:  P may not disavow                 
               the form of the 1988 Atrium Transaction.                               
                                        III.                                          
                    P claims that it is entitled to calculate the                     
               corporate minimum tax for the UBC affiliated group's                   
               1977, 1980, 1984, and 1985 taxable years on a separate                 
               return basis and claims refunds for those years on that                
               basis.  Held:  The regular tax deduction under sec.                    
               56(c), I.R.C., for an affiliated group of corporations                 
               is limited to the amount of tax imposed on the group                   
               under chapter one of subtitle A (without regard to the                 
               corporate minimum tax and certain other provisions and                 
               reduced by the sum of certain credits) and, therefore,                 
               P's refund claim is denied.                                            
                                         IV.                                          
                    P claims that certain furniture and fixtures                      
               placed in service by various members of the UBC                        
               affiliated group during the group’s 1987 through 1989                  
               taxable years, which are described in both asset                       
               guideline classes 57.0 (Distributive Trades and                        
               Services) and 00.11 (Office Furniture, Fixtures, and                   




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