Monroe Abstract Corp. v. Commissioner
United States Board of Tax Appeals
The taxpayer, engaged in the business of making and certifying abstracts of title, agreed with a title insurance company that in consideration of the latter's guaranteeing its title searches, it would deposit an amount equal to 5 percent of its income from title searches in a special reserve to cover possible losses arising out of those searches.
Read the full summary
The taxpayer, engaged in the business of making and certifying abstracts of title, agreed with a title insurance company that in consideration of the latter's guaranteeing its title searches, it would deposit an amount equal to 5 percent of its income from title searches in a special reserve to cover possible losses arising out of those searches. Amounts so deposited in the taxable year are held: (1) to be includable in taxable income because the subsequent use of or restrictions on income after receipt do not affect its taxability, (George Hyatt,36 B.T.A. 121, followed); (2) not to entitle…
1Opinion of the Court
*7OPINION.
Leech:
Petitioner contends, first, that the sum of $3,411.93 which it deposited in 1936 pursuant to the terms of its contract with the Insurance Co., is not subject to the normal tax on corporate incomes and, second, that it is entitled to a credit of $3,411.93 under *8section 26 (c) (1) of the Revenue Act of 1936,1 on the ground that it had entered into a contract restricting the payment of dividends within the meaning of that section.
The essence of petitioner’s position on the first point is that the amount it had to deposit in certain banks pursuant to the agreement with the Insurance…
2Cases cited3 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Brown v. HelveringSupreme Court of the United States · 1934
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
3Cited by7 opinions
- Conlorez Corp. v. CommissionerUnited States Tax Court · 1968
- R. A. Stewart & Co. v. CommissionerUnited States Tax Court · 1971
- Central West Coal Co. v. CommissionerUnited States Board of Tax Appeals · 1941
- Conlorez Corp. v. CommissionerUnited States Tax Court · 1968
- Monroe Abstract Corp. v. CommissionerUnited States Board of Tax Appeals · 1940
2 more not listed; retrieve them via the Exa API.