National Capital Ins. Co. v. Commissioner
United States Board of Tax Appeals
1. The petitioner, an insurance company other than a life or mutual, reinsured a portion of each risk assumed, and received from the reinsurer so-called flat commissions based upon the net premiums of the insurance ceded to it and an additional amount, designated as "contingent commissions", based upon the net results of the reinsurance.
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1. The petitioner, an insurance company other than a life or mutual, reinsured a portion of each risk assumed, and received from the reinsurer so-called flat commissions based upon the net premiums of the insurance ceded to it and an additional amount, designated as "contingent commissions", based upon the net results of the reinsurance. Held, that the amounts are taxable income, being reimbursement for commissions paid by the petitioner to its agents on the reinsurance or an offset against premiums on the reinsurance. 2. Commissions received by the petitioner for acting as broker in the…
1Opinion of the Court
*1082OPINION.
Seawell:
The major question is whether the amounts of $9,647.52 and $490.22 received by the petitioner from the Royal Insurance Co., Ltd., under the provisions of the reinsurance contract, and the sum of $2,909.59 received for acting as broker in the writing of policies of insurance for other companies, constitute taxable income *1083to the petitioner. No claim is being made by either party that the several amounts have any relation to investment income or gain from the sale or other disposition of property. They differ only as to whether the amounts are taxable as underwriting income. The…
2Cases cited5 opinions
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Bowers v. Lawyers Mortgage Co.Supreme Court of the United States · 1932
- United States v. Home Title InsuranceSupreme Court of the United States · 1932
- Massachusetts Protective Ass'n v. CommissionerUnited States Board of Tax Appeals · 1930
- Central National Fire Insurance v. Omaha Liberty Fire InsuranceSupreme Court of Iowa · 1922
3Cited by5 opinions
- International Life Ins. Co. v. CommissionerUnited States Tax Court · 1969
- Franklin Title & Trust Co. v. CommissionerUnited States Board of Tax Appeals · 1935
- International Life Ins. Co. v. CommissionerUnited States Tax Court · 1969
- National Capital Ins. Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- Van Schaick v. CommissionerUnited States Board of Tax Appeals · 1935