Maloof v. Commissioner
United States Tax Court
Prior to Dec. 7, 1941, petitioner conducted a business in China of importing, exporting, and contracting for the manufacture of linens and other goods. He sustained a war loss of assets of this business, consisting largely of inventory.
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Prior to Dec. 7, 1941, petitioner conducted a business in China of importing, exporting, and contracting for the manufacture of linens and other goods. He sustained a war loss of assets of this business, consisting largely of inventory. In 1966, he recovered an amount with respect to the lost inventory and realized a gain under sec. 1333(3), I.R.C. 1954. A replacement fund was established under sec. 1033(a)(2) and, within the required time, petitioner used the fund to establish a manufacturing business dealing with the same sort of goods as before. The assets of the new business included a…
1Opinion of the Court
OPINION
Section 1333(3) provides that any amount which it requires to be treated as gain from an involuntary conversion “shall be recognized or not recognized as provided in section 1033.” Under the latter section, where a taxpayer realizes a gain on the involuntary conversion of property used in his own trade or business, it is clear that the reinvestment must be made in substantially similar business property. Ellis D. Wheeler, 58 T.C. 459, 463 (1972). Stated differently, the statute requires a “reasonably similar continuation of the petitioner’s prior commitment of capital and not a…
2Cases cited15 opinions
- Massillon-Cleveland-Akron Sign Co. v. CommissionerUnited States Tax Court · 1950
- Loco Realty Company v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1962
- Haberland v. CommissionerUnited States Board of Tax Appeals · 1932
- Wheeler v. CommissionerUnited States Tax Court · 1972
- Willis v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1932
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3Cited by3 opinions
- Sim-Air, USA, Ltd. v. CommissionerUnited States Tax Court · 1992
- Maloof v. CommissionerUnited States Tax Court · 1975
- Sim-Air, USA, Ltd. v. CommissionerUnited States Tax Court · 1992