Smith & Wiggins Gin, Inc. v. Commissioner
United States Tax Court
1. In 1949 a cotton gin owned by a partnership was destroyed by fire and the partnership received insurance proceeds for the loss.
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1. In 1949 a cotton gin owned by a partnership was destroyed by fire and the partnership received insurance proceeds for the loss. Held, that such proceeds were expended by the partnership in the acquisition of a new gin; that under sections 112(f) and 113(a)(9) of the Internal Revenue Code of 1939, the basis of the new gin, to the extent replaced by the insurance proceeds, was the same as that of the property destroyed; that the new gin and other property of the partnership were transferred by the partners to the petitioner corporation in exchange for its stock; and that under sections…
1Opinion of the Court
AteiNS, Judge:
The respondent determined deficiencies in income tax for the taxable years ending July 31, 1955, and July 31, 1956, in the respective amounts of $1,779.55 and $2,704.43.
The issues presented are (1) whether an amount received by a predecessor partnership as insurance proceeds for loss, by fire, of a cotton gin was expended by it in partial replacement of the gin with the result that the depreciation basis of the new gin, to the extent replaced with the insurance proceeds, is the same as that of the destroyed gin, under section 113(a) (9) of the Internal Eevenue Code of 1939, and…
2Cases cited9 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- National Carbide Corp. v. CommissionerSupreme Court of the United States · 1949
- London Assurance Co. v. DrennenSupreme Court of the United States · 1886
- Pomeroy Coop. Grain Co. v. CommissionerUnited States Tax Court · 1958
- Pomeroy Cooperative Grain Company v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1961
4 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
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- Ford-Iroquois FS, Inc. v. CommissionerUnited States Tax Court · 1980
- Michigan Mobile Home & Recreational Vehicle Institute v. CommissionerUnited States Tax Court · 1976
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