Legal Opinion

Home Title Guaranty Co. v. Commissioner

United States Tax Court

Decided November 16, 1950No. Docket No. 20631PublishedCited by 4 opinions

Petitioner, a New York corporation, is subject to taxation as an insurance company under section 204 of the Internal Revenue Code. From June 1, 1938, to May 31, 1945, inclusive, petitioner maintained a premium reserve in accordance with a New York statute.

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Petitioner, a New York corporation, is subject to taxation as an insurance company under section 204 of the Internal Revenue Code. From June 1, 1938, to May 31, 1945, inclusive, petitioner maintained a premium reserve in accordance with a New York statute. No part of this reserve constituted unearned premiums under section 204 (b) (5), I. R. C., and no additions to the reserve were deducted by petitioner in its income tax returns prior to the taxable year 1945. On June 1, 1945, pursuant to the New York statute as amended, petitioner segregated and maintained a reinsurance reserve. Additional…

1Opinion of the Court

OPINION.

Black, Judge:

The sole issue in this proceeding is whether the respondent, in computing the premiums earned by petitioner in 1945, erred in determining that the portion of petitioner’s reinsurance reserve which prior to June 1,1945, was carried in its premium reserve did not constitute unearned premiums on December 31, 1945, within the meaning of section 204 (b) (5) of the Internal Revenue Code.1

*******(b) Definition of Income, Etc. — In the case of an insurance company subject to the tax imposed by this section—(5) Premiums earned. — “Premiums earned on insurance contracts during the…

2Cases cited1 opinion

  1. Title & Trust Co. v. CommissionerUnited States Tax Court · 1950

3Cited by4 opinions

  1. Washington Title Insurance v. United StatesUnited States Court of Claims · 1955
  2. The Title Guarantee Company v. The United StatesUnited States Court of Claims · 1970
  3. City Title Ins. Co. v. CommissionerUnited States Tax Court · 1955
  4. Home Title Guaranty Co. v. CommissionerUnited States Tax Court · 1950

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