Tobias v. Commissioner
United States Tax Court
Held: 1. Proceeds of a fire insurance policy paid on account of a fire, where the lessee paid the premiums covering machinery and equipment placed upon the property by the lessee, belonged to the lessor where the lease gave the lessor ownership of the machinery and equipment and the proceeds are taxable to the lessor at capital gains rates.
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Held: 1. Proceeds of a fire insurance policy paid on account of a fire, where the lessee paid the premiums covering machinery and equipment placed upon the property by the lessee, belonged to the lessor where the lease gave the lessor ownership of the machinery and equipment and the proceeds are taxable to the lessor at capital gains rates. Owen Meredith, 12 T.C. 344 (1949), followed. 2. Certain of the proceeds in the amount of $ 34,740.92 were not proceeds collected by the lessor for his property and this amount represented a constructive dividend to petitioner-lessor from the lessee where…
1Opinion of the Court
OPINION
Black, Judge:
Issue 1
Involuntai^ Conversion of Property
Petitioner received $213,790.32 in 1954 as reimbursement under a fire insurance policy paid because of damaged and destroyed machinery and equipment located in a building owned by him. Petitioner purchased the building on or about February 1, 1949, and he leased it to Gibbons, a corporation in which he is controlling stockholder, for a term of 10 years on February 1, 1949, later changed to 20 years. Petitioner retained $207,706.77 of the insurance proceeds and paid Gibbons the amount of $6,088.55.
From February 1, 1949, to May 11,…
2Cases cited15 opinions
- Helvering v. BruunSupreme Court of the United States · 1940
- M. E. Blatt Co. v. United StatesSupreme Court of the United States · 1938
- Raymond G. Burge and Kathleen E. Burge v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1958
- Burge v. CommissionerUnited States Tax Court · 1957
- C. D. Spangler and Veva C. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1960
10 more not listed; retrieve them via the Exa API.
3Cited by16 opinions
- Central Tablet Manufacturing Co. v. United StatesSupreme Court of the United States · 1974
- Todd Tibbals and Helen A. Tibbals v. The United StatesUnited States Court of Claims · 1966
- Van Heusden v. CommissionerUnited States Tax Court · 1965
- Boston Fish Market Corp. v. CommissionerUnited States Tax Court · 1972
- Jasko v. CommissionerUnited States Tax Court · 1996
11 more not listed; retrieve them via the Exa API.