- 3 - traded. It is owned by its approximately 2,700 members, and its principal place of business was in Chicago, Illinois, when it petitioned the Court. It is not a member of a controlled group of corporations within the meaning of section 1563(a) of the Internal Revenue Code of 1986. Discussion The parties agree that respondent’s motion can be decided by way of summary judgment, and so do we. Respondent argues that petitioner has no affiliates for purposes of section 204(a)(7)(C) because it is not a member of a controlled group of corporations. Respondent asserts that the word “affiliates” for purposes of section 204(a)(7)(C) requires that the taxpayer be a corporation and that the corporation be a member of a controlled group. Respondent relies on the flush language of section 204(a)(7), asserting that this language sets forth the exclusive definition of the word “affiliates” for purposes of section 204(a)(7)(C). We disagree with respondent’s assertion that the flush language of section 204(a)(7) contains the exclusive definition of the word “affiliates” for purposes of section 204(a)(7). Section 204(a)(7) provides: (7) Certain Leasehold Improvements.– * * * [The repeal of the investment tax credit and accelerated cost recovery system] shall not apply to any reasonable leasehold improvements, equipment and furnishings placed in service by a lessee or its affiliates if–- (A) the lessee or an affiliate is the original lessee of each building in which such property is to be used,Page: Previous 1 2 3 4 5 Next
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