Connally v. Commissioner
United States Board of Tax Appeals
1. The respondent's determination as to the fair market value of lands acquired by the petitioner from her mother's estate sustained upon evidence of record. 2. Respondent's prayer for affirmative relief by correction of error made in his original audit, granted. 3. Deduction from gross income for legal expenses paid in the taxable year allowed in part.
1Opinion of the Court
*923OPINION.
Tuener :
The principal point contended for by the petitioner is that in no event can any part of the money paid to her for condemned lands be taxed as profit, because all of it represents “ compensation for losses sustained ”, and, being payment for losses, the proceeds can not be taxed as g’ains.
From the standpoint of taxable profit, there is no magic in the term “ compensation.” When applied to awards in condemnation matters, it relates entirely to the value of property at the date of its appropriation to public use, plus any special damages suffered by the owner. It therefore has…
2Cases cited1 opinion
- United States v. Supplee-Biddle Hardware Co.Supreme Court of the United States · 1924
3Cited by6 opinions
- Isaac G. Johnson & Co. v. United StatesCourt of Appeals for the Second Circuit · 1945
- Casalina Corp. v. CommissionerUnited States Tax Court · 1973
- Ovider Realty Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1951
- Herbst v. CommissionerUnited States Tax Court · 1943
- Casalina Corp. v. CommissionerUnited States Tax Court · 1973
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