Tg missouri

Toyoda Gosei is expanding production capacity at TG Missouri, one of its American manufacturing subsidiaries.

In addition to expansion of TG Missouri’s Headquarters Plant (Perryville Plant), a new building has been purchased for the Indiana site, where injection moulding machines, painting booths and other equipment will be installed to handle growing sales of radiator grilles and other interior and exterior parts in the US.

Total investment will be around US$40m and new facilities will be fitted with energy-saving equipment.

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28 Aug 2020

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Background – Case No. 8333-06.

This is a case filed in the United States Tax Court.  The sole issue in this case is whether production molds TG Missouri Corporation sold to its customers are assets subject to depreciation for purposes for their tax years.  Another issue is whether the amounts paid to third party toolmakers for the molds would count as “cost of supplies” for qualified research expenses when calculating research credits for 1997, 1998 and 1999.

Basic Facts

TG Missouri is in the business of creating and manufacturing products such as steering wheels, air bags and body side molding for the automotive industry.  After receiving the contract request, TG Missouri consults with the customer to develop a production mold and they are only entitled to payment if they successfully build a mold and the customers accepts these products to build the mold.  TG Missouri would sometimes construct the tool themselves or consult with a third party.  The petitioner and third party then work together to design and build the mold.  After the third party toolmaker finishes constructing the production mold, the petitioner purchases the mold.  This process generally takes around 24 to 36 months to develop, design, construct and test the mold.

TG Missouri filed its 1997-99 Corpartion Income Tax Returns and in the 1998 and 1999 returns, they capitalized and depreciated the costs paid to third party toolmakers but included the costs paid to third party toolmakers as qualified research for research credits.  In 1997 they claimed $2,316,601 in research credits and used $48,675 of this amount in 1997 and carried for $2,267,926 in 1998. In 2006, the Commissioner of Internal Revenue mailed a notice of deficiency for 1998 and 1999 because they beclieved the costs incurred in purchasing the prodcution molds from third parties did not count towards research expenses for calculating research credit.  In response, TG Missouri filed a petition claiming that the costs incurred in 1997, 1998 and 1999 qualify as research expenditures.  When this case was called before the trail court, both parties moved pursuant to Rule 122 to submit this case fully stipulated, which saves time and money for both sides.



  • The production molds that the petitioner sold to its customers are not not subject to depreciation allowances because the petitioner does not have any economic interest in production molds it has sold.
  • TG Missour properly included the costs of production of molds it purchased from third parties as the cost of supplies; therefore, the respondent’s adjustments to TG Missouri’s 1998 and 1999 returns are erroneous and are not sustained.

Click Here to view the full case: TG Missouri Corporation v. Commissioner, 133 T.C. 278 ( T.C. 2009).

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TG Missouri is a proud division of Toyoda Gosei, with North American headquarters in Troy, Michigan.

People motivated to be a preferred supplier of high polymer auto parts and components that enhance the comfort, appearance and safety of vehicles

1. Customer Satisfaction
2. Quality Orientation
3. Continuous Improvement
4. Corporate Citizenship
5. Empowerment / Accountability
6. Mutual Respect

TG Missouri manufactures automotive parts under two divisions:
Safety Systems products
Interior/Exterior products

TG is a customer-driven, global company that provides products of exceptional quality. As such, we recognize that our employees' success will contribute to our total company success. Therefore, we have high expectations of our employees and are confident our employees can exceed them. These expectations are necessary in order for us to sustain our growth and achievement. With our employees' help and efforts, TGMO/TGNAI/TGMS is looking forward to continuing growth and prosperity as we find new and better ways to serve our customers' needs.



Missouri tg



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