Montgomery v. Commissioner
United States Tax Court
Petitioner and his brother, as joint venturers doing business as Gulfmont Enterprises, acquired two apartment buildings located on Beach Front Highway in Gulfport, Miss., in April 1969. Both buildings were completely destroyed by "Hurricane Camille" which struck the gulf coast area on Aug. 17, 1969, resulting in a total loss to petitioner and his brother in the amount of $ 45,882.81. The apartment buildings were insured under two fire and casualty policies in the amount of $…
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Petitioner and his brother, as joint venturers doing business as Gulfmont Enterprises, acquired two apartment buildings located on Beach Front Highway in Gulfport, Miss., in April 1969. Both buildings were completely destroyed by "Hurricane Camille" which struck the gulf coast area on Aug. 17, 1969, resulting in a total loss to petitioner and his brother in the amount of $ 45,882.81. The apartment buildings were insured under two fire and casualty policies in the amount of $ 22,000 each, covering certain specified losses, including wind damage but excluding losses resulting from floods, tidal…
1Opinion of the Court
OPINION
Section 165(a) permits a taxpayer to deduct “any loss sustained during the taxable year and not compensated for by insurance or otherwise.” A loss is sustained, within the meaning of section 165(a), in the year identifiable events evidence a closed and completed transaction. Sec. 1.165-l(d)(l), Income Tax Regs.2 Whether a casualty loss has been sustained in the year of the casualty often turns on the taxpayer’s prospects of receiving future reimbursement. If, during the tax year of the casualty, there exists a claim for reimbursement for which there is a reasonable prospect of…
2Cases cited19 opinions
- United States v. Kirby Lumber CoSupreme Court of the United States · 1931
- Thelma Rosenberg v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Block v. CommissionerUnited States Board of Tax Appeals · 1939
- Union Trust Co. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1940
- Luhring v. GlotzbachCourt of Appeals for the Fourth Circuit · 1962
14 more not listed; retrieve them via the Exa API.
3Cited by41 opinions
- Powers v. CommissionerUnited States Tax Court · 1993
- National Home Products, Inc. v. CommissionerUnited States Tax Court · 1979
- Michaels v. CommissionerUnited States Tax Court · 1986
- OKC Corp. v. CommissionerUnited States Tax Court · 1984
- R. R. Hensler, Inc. v. CommissionerUnited States Tax Court · 1979
36 more not listed; retrieve them via the Exa API.