Lynchburg Nat'l Bank & Trust Co. v. Commissioner
United States Tax Court
The petitioner purchased certain improved real estate with the intention of demolishing the existing building and erecting an addition to its bank. Due to building restrictions imposed during the war, it was impossible to carry out the petitioner's intention and the existing building was rented. In 1946 fire destroyed a portion of the existing building and insurance proceeds were received by the petitioner as a result of the loss.
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The petitioner purchased certain improved real estate with the intention of demolishing the existing building and erecting an addition to its bank. Due to building restrictions imposed during the war, it was impossible to carry out the petitioner's intention and the existing building was rented. In 1946 fire destroyed a portion of the existing building and insurance proceeds were received by the petitioner as a result of the loss. A replacement fund was established and the insurance proceeds were thereafter used to construct the bank addition as originally intended. Held, functionally the…
1Opinion of the Court
OPINION.
Hill, Judge:
The petitioner argues that it expended the insurance proceeds here in question in the acquisition of other “property similar or related in service or use to the property” destroyed by fire and is, therefore, entitled to the benefits of section 112 (f) of the Code1 as it existed prior to its amendment by the Revenue Act of 1951. This argument is based upon the following facts: The property destroyed by fire was acquired by the petitioner for the purpose of building an addition to its bank. In 1950 the addition to the bank was completed. Both the addition and the preexisting…
2Cases cited2 opinions
- Massillon-Cleveland-Akron Sign Co. v. CommissionerUnited States Tax Court · 1950
- Providence Journal Co. v. BroderickCourt of Appeals for the First Circuit · 1939
3Cited by47 opinions
- Loco Realty Company v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1962
- Estate of Lamberth v. CommissionerUnited States Tax Court · 1958
- Gaynor News Co. v. CommissionerUnited States Tax Court · 1954
- Gilman v. CommissionerUnited States Tax Court · 1979
- Liant Record, Inc., William I. Alpert and Paula G. Alpert, Abraham Alpert and Sarah Alpert, Jack L. Alpert v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1962
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