Williams Furniture Corp. v. Commissioner
United States Board of Tax Appeals
1. Petitioner's furniture plant was destroyed by fire in 1936 and petitioner collected certain amounts under use and occupancy insurance policies in addition to regular fire insurance, and it used the money thus collected in forthwith acquiring a new plant for carrying on the same business as before.
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1. Petitioner's furniture plant was destroyed by fire in 1936 and petitioner collected certain amounts under use and occupancy insurance policies in addition to regular fire insurance, and it used the money thus collected in forthwith acquiring a new plant for carrying on the same business as before. Held, since the use and occupancy insurance did not insure petitioner against the loss of net profits of the business, but was merely additional insurance on the destruction of the plant by fire of a certain amount per day multiplied by the number of days it would reasonably take to rebuild the…
1Opinion of the Court
*935OPINION.
Black:
The principal issue in this proceeding is whether, under section 112 (f) of the Revenue Acts of 1934 and 1936, no gain or loss should be recognized in connection with the proceeds of $120,000 received by petitioner as use and occupancy insurance as the result of the fire which destroyed the greater part of petitioner’s plant on March 31, 1936, which proceeds, together with straight fire insurance proceeds, were credited to a replacement fund account on its books and all used in. the acquisition of other property similar or related in service or use to the property destroyed by…
2Cited by3 opinions
- Shakertown Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1960
- Tischler v. Director, Division of TaxationNew Jersey Tax Court · 1998
- Williams Furniture Corp. v. CommissionerUnited States Board of Tax Appeals · 1941