Massillon-Cleveland-Akron Sign Co. v. Commissioner
United States Tax Court
1. Upon the facts, held, insurance proceeds received by petitioner in payment for buildings, machinery, and equipment destroyed by fire were expended in the acquisition of other property similar or related in service or use to the property destroyed within the meaning of section 112 (f) of the Internal Revenue Code. 2. Where petitioner received compensation for the loss of net profits because of the interruption by fire of its business activities, held, the insurance…
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1. Upon the facts, held, insurance proceeds received by petitioner in payment for buildings, machinery, and equipment destroyed by fire were expended in the acquisition of other property similar or related in service or use to the property destroyed within the meaning of section 112 (f) of the Internal Revenue Code. 2. Where petitioner received compensation for the loss of net profits because of the interruption by fire of its business activities, held, the insurance proceeds received in lieu of net profits are taxable as ordinary income under section 22 (a), and, therefore, are not…
1Opinion of the Court
OPINION.
Harron, Judge:
Issue 1. The question under this issue is whether respondent was correct in determining that a part of the involuntary conversion of petitioner’s property did not occur within the provisions of section 112 (f) of the Internal Revenue Code.1 Under section 112 (f), even though the proceeds of fire insurance exceed the adjusted basis of the property destroyed, if the proceeds are expended in the acquisition of other property similar or related to the property destroyed, the recognition of any gain will be limited to such portion of the proceeds as is not so expended.
The…
2Cases cited2 opinions
- Kimbell-Diamond Milling Co. v. Comm'rUnited States Tax Court · 1950
- Kimbell-Diamond Milling Co. v. CommissionerUnited States Tax Court · 1948
3Cited by41 opinions
- Lynchburg Nat'l Bank & Trust Co. v. CommissionerUnited States Tax Court · 1953
- Lynchburg Nat. Bank & Trust Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1953
- Newberry v. CommissionerUnited States Tax Court · 1981
- Ticket Office Equipment Co. v. CommissionerUnited States Tax Court · 1953
- Loco Realty Company v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1962
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