Husch Bros., Inc. v. Commissioner
United States Board of Tax Appeals
At the time of a fire petitioner had on hand certain merchandise belonging to itself and certain other merchandise as bailee or warehouseman for customers. Insurance policies taken out by petitioner covered both classes of merchandise. An amount was set aside or held as a reserve, to meet customers' claims the amount of which were unknown and undeterminable. About two and a half years later the amount so set aside was reported as income.
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At the time of a fire petitioner had on hand certain merchandise belonging to itself and certain other merchandise as bailee or warehouseman for customers. Insurance policies taken out by petitioner covered both classes of merchandise. An amount was set aside or held as a reserve, to meet customers' claims the amount of which were unknown and undeterminable. About two and a half years later the amount so set aside was reported as income. Held, that the amount was income in the year in which received and not in the subsequent year.
1Opinion of the Court
HUSCH BROS., INC., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Husch Bros., Inc. v. Commissioner
Docket No. 7591.
United States Board of Tax Appeals
6 B.T.A. 1056; 1927 BTA LEXIS 3342;
April 26, 1927, Promulgated
At the time of a fire petitioner had on hand certain merchandise belonging to itself and certain other merchandise as bailee or warehouseman for customers. Insurance policies taken out by petitioner covered both classes of merchandise. An amount was set aside or held as a reserve, to meet customers' claims the amount of which were unknown and undeterminable. About two and…
2Cases cited1 opinion
- Husch Bros., Inc. v. CommissionerUnited States Board of Tax Appeals · 1927