Union Carbide Foreign Sales Corporation, et al. - Page 1















                                   115 T.C. No. 32                                     


                               UNITED STATES TAX COURT                                 


          UNION CARBIDE FOREIGN SALES CORPORATION, ET AL.,1 Petitioners v.             
                    COMMISSIONER OF INTERNAL REVENUE, Respondent                       


               Docket Nos. 14641-97, 14642-97,      Filed November 8, 2000.            
          14643-97, 11119-99.                                                          


                    P leased an asset, and the terms of the lease                      
               became onerous or burdensome.  Under lease agreements,                  
               P was entitled to either terminate the lease or                         
               purchase the leased asset by the payment of a certain                   
               sum.  P chose to acquire the leased asset and, relying                  
               on Cleveland Allerton Hotel, Inc. v. Commissioner, 166                  
               F.2d 805 (6th Cir. 1948), revg. a Memorandum Opinion of                 
               this Court dated May 7, 1947, seeks to bifurcate and                    
               allocate the asset acquisition cost into two portions.                  
               P asserts one portion should represent the value of the                 
               leased asset without considering the value of the                       
               existing lease.  P further asserts that the remaining                   
               portion should be allowed as a business deduction for                   


               1 Cases of the following petitioners are consolidated                   
          herewith:  UOP, Catalysts, Adsorbents and Process Systems, Inc.,             
          Tax Matters Partner, docket No. 14642-97; Union Carbide                      
          Corporation and Subsidiaries, docket No. 14643-97; and Union                 
          Carbide Corporation and Subsidiaries, docket No. 11119-99.                   





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