Thalhimer Bros., Inc. v. Commissioner
United States Tax Court
1. Petitioner, an accrual basis taxpayer which operated a department store, sustained losses from water and business interruption which resulted from a fire that occurred 6 days prior to the close of the first fiscal year here involved. Insurance payments in respect of the losses were made to petitioner in the following fiscal year, after the extent of damage had been determined and a dispute regarding provisions of insurance policies had been settled.
Read the full summary
1. Petitioner, an accrual basis taxpayer which operated a department store, sustained losses from water and business interruption which resulted from a fire that occurred 6 days prior to the close of the first fiscal year here involved. Insurance payments in respect of the losses were made to petitioner in the following fiscal year, after the extent of damage had been determined and a dispute regarding provisions of insurance policies had been settled. Held, the income derived from portions of the insurance proceeds accrued and became subject to tax in the later fiscal year, rather than in…
1Opinion of the Court
PiERCE, Judge:
The respondent determined deficiencies in income and excess profits taxes of the petitioner, as follows:
Fiscal year Excess profits ended January 91 Income tax tax
1946_$1,340.40 $32, 465. 64
1947_ 9,270.78 -
The issues for decision are:
1. A fire occurred in petitioner’s department store, near the end of the first fiscal year here involved; and in the following fiscal year, after the extent of damage had become determinable and a dispute regarding provisions of the insurance policies had been settled, insurance payments (portions of which are conceded to be income) were made to…
2Cases cited1 opinion
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
3Cited by9 opinions
- Houston Chronicle Publishing Company, Plaintiff-Appellee-Cross v. United States of America, Defendant-Appellant-CrossCourt of Appeals for the Fifth Circuit · 1973
- Southland Royalty Co. v. United StatesUnited States Court of Claims · 1978
- American Spring & Wire Specialty Co. v. CommissionerUnited States Tax Court · 1961
- Central Tablet Manufacturing Co. v. United StatesSupreme Court of the United States · 1974
- Central Tablet Manufacturing Co. v. United StatesSupreme Court of the United States · 1974
4 more not listed; retrieve them via the Exa API.