Home Mut. Ins. Co. v. Commissioner
United States Tax Court
Petitioner estimated its unpaid losses as of Dec. 31, 1962, when underwriting income first became taxable by an examination of each filed claim. In each of its subsequent taxable years it settled claims pending on Dec. 31, 1962, for less than the estimate. Held, petitioner is entitled to an adjustment in each of its taxable years for the difference between the amount of the estimated claim pending on Dec. 31, 1962, and the amount for which the claim was subsequently settled.
Read the full summary
Petitioner estimated its unpaid losses as of Dec. 31, 1962, when underwriting income first became taxable by an examination of each filed claim. In each of its subsequent taxable years it settled claims pending on Dec. 31, 1962, for less than the estimate. Held, petitioner is entitled to an adjustment in each of its taxable years for the difference between the amount of the estimated claim pending on Dec. 31, 1962, and the amount for which the claim was subsequently settled. Held, further, the special transitional underwriting loss reduction provided by sec. 821(e), I.R.C. 1954, applicable to…
1Opinion of the Court
OPINION
Goffe, Judge:
The Commissioner determined deficiencies in petitioner’s Federal mutual insurance company income taxes for the taxable years 1966 and 1971 in the respective amounts of $29,906.21 and $18,624.50. The issues for decision are as follows:(1) Should petitioner be permitted to adjust its estimate of unpaid losses as of December 31,1962, in each of its subsequent taxable years based strictly upon settlements of its claims which had been estimated on that date;(2) In the alternative, must recoveries (salvage and subrogation) on losses paid prior to January 1, 1963, be offset…
2Cases cited10 opinions
- Maryland Casualty Co. v. United StatesSupreme Court of the United States · 1920
- Tennessee Carolina Transp., Inc. v. CommissionerUnited States Tax Court · 1975
- Tennessee-Carolina Transportation, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1978
- Commissioner v. Dallas Title & Guaranty Co.Court of Appeals for the Fifth Circuit · 1941
- Dallas Title & Guaranty Co. v. CommissionerUnited States Board of Tax Appeals · 1939
5 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Home Mutual Insurance Company, Cross v. Commissioner of Internal Revenue, CrossCourt of Appeals for the Seventh Circuit · 1980
- Rosenberg v. CommissionerUnited States Tax Court · 1991
- American Financial Corp. v. CommissionerUnited States Tax Court · 1979
- Barnes v. Comm'rUnited States Tax Court · 2012
- Maryland Deposit Ins. Fund Corp. v. CommissionerUnited States Tax Court · 1987
6 more not listed; retrieve them via the Exa API.