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have not occurred by the close of the taxable year.
Brown v. Helvering, 291 U.S. 193, (1934); cf. American
Automobile Assn. v. United States, 367 U.S. 687, 693,
(1961). [Id. at 243-244; emphasis added.]
Prior to the Supreme Court’s decision in Hughes Properties,
but consistent with its reasoning, this Court in World Airways v.
Commissioner, 62 T.C. 786 (1974), affd. 564 F.2d 886 (9th Cir.
1977), found that a statutory liability by itself was
insufficient to fix liability for the purposes of the all events
test. The Court found it was not the statute acting alone that
caused the liability. In that case the taxpayer was statutorily
required to overhaul its aircraft after specified numbers of
flight hours. The Court refused to allow deduction of a portion
of the anticipated overhaul costs corresponding to the amount of
flight hours logged in the taxable year, as “Petitioner was under
no obligation to make any payment unless an overhaul was actually
performed." Id. at 802. Only if the taxpayer continued to use
the aircraft would the point at which overhaul was required be
reached. While the Court found that the possibility the aircraft
might crash or be grounded was perhaps remote, it recognized the
more substantial possibility that the taxpayer's use of the
aircraft could be cut short because of a sale of the aircraft.
See id. at 804. In contrast to Hughes Properties, the statute
did not require the equivalent of setting aside a specific
reserve fund based on the hours flown during the fiscal year.
Thus even assuming, arguendo, that the basis of part of
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