- 4 -
difference between MGM's basis in UA and the amount received from
Tracinda for all the UA stock is hereafter called the UA Loss.
TBS and respondent jointly moved to sever from the rest of
the TBS case what will hereafter be described as the section 311
and section 267 issues. The parties also filed a joint motion
for consolidation of docket No. 14786-96 (Tracinda) and docket
No. 13977-96 (TBS). On March 11, 1997, the parties' joint
motions for issue severance and consolidation were granted.
This matter is before the Court on petitioner TBS' and
petitioner Tracinda's Motions for Partial Summary Judgment and
respondent's Motion for Summary Judgment, under Rule 121. The
first and second stipulations of fact and attached exhibits are
incorporated herein.
The parties have asked this Court to decide the following
issues as a matter of law: (1) Whether the transaction by which
MGM sold stock of UA to Tracinda (the UA Sale) is properly
characterized for tax purposes in accordance with its form as a
sale, rather than as a constructive redemption of MGM stock
subject to section 311 (the section 311 issue); and (2) if the
transaction is properly characterized as a sale, whether section
267 and section 1.267(f)-1T(c)(6) and (7), Temporary Income Tax
Regs., 49 Fed. Reg. 46998 (Nov. 30, 1984), apply to (a) disallow
the UA Loss claimed by MGM on the UA Sale, and (b) increase
Tracinda's basis in the UA stock by the amount of the UA Loss
(the section 267(f) issue).
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011