- 76 -
Petitioner's reliance on Gottesman & Co. v. Commissioner,
77 T.C. 1149 (1981), is misplaced. In Gottesman, this Court held
that, since the consolidated return regulations did not mandate a
consolidated calculation of the accumulated earnings tax under
section 531, the taxpayer was permitted to use a separate company
calculation. In this case, however, petitioner seeks to adopt a
method that is contrary to an express provision of the Code, section
56(c). Gottesman is inapposite.
In light of our analysis, we believe that petitioner's other
arguments do not merit discussion. In conclusion, the deduction
under section 56(c) for an affiliated group of corporations is
limited to the group's actually imposed chapter one tax, and,
therefore, petitioner's claims for refunds must fail.
E. Conclusion
Petitioner is not entitled to refunds of payments made to
satisfy the UBC affiliated group's corporate minimum tax liabilities
for the years in issue.
IV. Furniture and Fixtures Recovery Period Issue
A. Introduction
We must determine the applicable recovery period for certain
furniture and fixtures (the furniture and fixtures) placed in
service by various members of the UBC affiliated group during the
group’s 1987, 1988, and 1989 taxable years. The applicable recovery
24(...continued)
for other purposes, such as the addition to tax under sec.
6655(a), does not change our conclusion that the amounts derived
from such allocation are not taxes imposed by chapter one of
subtitle A of the Code.
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