113 T.C. No. 22
UNITED STATES TAX COURT
UNIONBANCAL CORPORATION, F.K.A. UNION BANK, SUCCESSOR IN INTEREST
TO STANDARD CHARTERED HOLDINGS, INC. AND INCLUDABLE SUBSIDIARIES,
Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Docket No. 11364-97. Filed October 22, 1999.
In 1984, P was part of a controlled group of
corporations. On its 1984 Federal income tax return, P
reported an $11.6 million loss resulting from P’s sale
of a loan portfolio to its United Kingdom parent
corporation, SC-UK. United States and United Kingdom
competent authorities subsequently determined that the
actual loss was $87.9 million. Pursuant to a
settlement agreement for the 1984 taxable year, R
allowed P to deduct $2.3 million of the loss on its
1984 return. The remaining loss was deferred pursuant
to sec. 267(f), I.R.C. R determined that under sec.
1.267(f)-1T(c)(6), Temporary Income Tax Regs., 49 Fed.
Reg. 46998 (Nov. 30, 1984), P was not entitled to
deduct the deferred loss in 1988 when it left the
controlled group before the loan portfolio had been
disposed of outside the controlled group. Instead, R
determined that under sec. 1.267(f)-1T(c)(7), Temporary
Income Tax Regs., supra, SC-UK’s basis in the loan
Page: 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