Palladium Amusement Co. v. Commissioner
United States Board of Tax Appeals
Where property is taken for public purposes under condemnation proceedings and an award is made for the property taken, which award is paid in part by offsetting the amount of benefits accruing to the remaining property from the improvement, held, the amount of the award is not "gain" to the extent it is canceled by the benefits assessed; and the gain derived from the transaction should be computed by reducing the gross award by the amount of the assessed benefits, and then…
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Where property is taken for public purposes under condemnation proceedings and an award is made for the property taken, which award is paid in part by offsetting the amount of benefits accruing to the remaining property from the improvement, held, the amount of the award is not "gain" to the extent it is canceled by the benefits assessed; and the gain derived from the transaction should be computed by reducing the gross award by the amount of the assessed benefits, and then deducting the cost of the property taken. Carrano v. Commissioner, 70 Fed.(2d) 319, and Wolf v. Commissioner, 77…
1Opinion of the Court
OPINION.
Hill:
This proceeding involves a deficiency in income tax for the year 1933 in the amount of $3,858.36. Several issues were raised by the pleadings, but on brief petitioner, without objection by respondent, has abandoned all issues except one involving the question whether respondent erred in determining the amount of taxable profit derived by petitioner as the result of a condemnation award. .
There is no controversy respecting the facts. Petitioner is a Missouri corporation, organized in 1916, with its principal place of business at St. Louis. During the year 1933 petitioner was the…
2Cases cited1 opinion
- State ex rel. Chicago, Burlington & Quincy Railroad v. City of KansasSupreme Court of Missouri · 1886
3Cited by3 opinions
- Palladium Amusement Co. v. CommissionerUnited States Board of Tax Appeals · 1938
- Pioneer Real Estate Co. v. CommissionerUnited States Board of Tax Appeals · 1942
- Ridge Rd. Inv. Corp. v. CommissionerUnited States Tax Court · 1944