Chrysler Corporation, f.k.a. Chrysler Holding Corporation, as Successor by Merger to Chrysler Motors Corporation and Its Consolidated Subsidiaries - Page 13




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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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