In the United States Court of Federal Claims
In the United States Court of Federal Claims No. 09-273T (Filed under seal: July 31, 2013) Reissued: August 22, 20131 _________ DESERET MANAGEMENT * CORPORATION, * Tax refund claim; Trial; Exchange of radio * stations; Like-kind exchange – section 1031 * of the Code; Goodwill – qualitative and Plaintiff, * quantitative aspects; Significant goodwill not * transferred in exchange of radio stations; v. Class lives of depreciable property – sections * * 167 and 168 of the Code; Air conditioning THE UNITED STATES, equipment reclassified; Other assets received * proper class lives; Refund process Defendant. * established. * _________ OPINION __________ Eric C. Olson, Kirton & McConkie, Salt Lake City, UT, for plaintiff. Benjamin C. King, Jr., Tax Division, United States Department of Justice, Washington, D.C., with whom was Assistant Attorney General Kathryn M. Keneally, for defendant. ALLEGRA, Judge: This tax refund case is before the court following trial in Washington, D.C. There are two distinct issues presented in this case. The first involves the tax treatment of a swap of radio stations that occurred in 2000. More specifically, at issue is whether the agreed upon value of radio station KZLA-FM (KZLA), the Los Angeles station that plaintiff swapped in that transaction, included any component for goodwill. Plaintiff claims that the station, which was the only country station in Los Angeles at the time, possessed no appreciable goodwill; defendant contends otherwise. If plaintiff is correct, no additional taxes were owed on the swap, 1 An unredacted version of this opinion was issued under seal on July 31, 2013. The parties were given an opportunity to propose redactions, but no such proposals were made.
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