Waldheim Realty & Inv. Co. v. Commissioner
United States Tax Court
In computing its income for 1950, 1951, and 1952, petitioner, a cash basis taxpayer, deducted insurance premiums paid during such years even though the insurance coverage so purchased extended to years subsequent to 1952. It had consistently followed this practice in previous years, including 1947, 1948, and 1949. The respondent determined that the insurance premiums paid in 1950, 1951, and 1952 should be prorated over the period of coverage purchased by such premiums.
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In computing its income for 1950, 1951, and 1952, petitioner, a cash basis taxpayer, deducted insurance premiums paid during such years even though the insurance coverage so purchased extended to years subsequent to 1952. It had consistently followed this practice in previous years, including 1947, 1948, and 1949. The respondent determined that the insurance premiums paid in 1950, 1951, and 1952 should be prorated over the period of coverage purchased by such premiums. Petitioner claimed that, if proration is required, it should be allowed to prorate to the years in issue those portions of…
1Opinion of the Court
OPINION.
Rice, Judge:
This proceeding involves the following deficiencies in income tax determined by the respondent under the provisions of the 1939 Code:
Year Deficiency
1950_$1, 789.27
1951_ 3,423.24
1952_ 388.49
The issues are: (1) Whether petitioner may deduct the entire amount of insurance premiums paid during the years in issue in computing its income for such years, when a part of such premiums was for insurance coverage in years subsequent to those in which the premiums were paid; and (2) if not, whether petitioner may deduct that portion of insurance premiums paid in 1947,1948, and 1949,…
2Cases cited14 opinions
- Commissioner of Internal Revenue v. Mnookin's EstateCourt of Appeals for the Eighth Circuit · 1950
- Commissioner of Internal Revenue v. DwyerCourt of Appeals for the Second Circuit · 1953
- Alamo Nat. Bank v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1938
- Mnookin v. CommissionerUnited States Tax Court · 1949
- Commissioner of Internal Revenue v. Boylston Market Ass'nCourt of Appeals for the First Circuit · 1942
9 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Waldheim Realty and Investment Company v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1957
- Williamson v. CommissionerUnited States Tax Court · 1962
- Kenosha Auto Transport Corp. v. CommissionerUnited States Tax Court · 1957
- Lincoln Sav. & Loan Asso. v. CommissionerUnited States Tax Court · 1968
- Kaufman's, Inc. v. CommissionerUnited States Tax Court · 1957
13 more not listed; retrieve them via the Exa API.