Modern Home Fire & Casualty Ins. Co. v. Commissioner
United States Tax Court
1. Held, that petitioner was not entitled to deduct or exclude 15 percent of the premiums received on title insurance as "unearned premiums" within the meaning of sec. 832(b)(4), I.R.C. 1954. 2. Held, that claims paid by petitioner pursuant to policies of title insurance were properly deducted as "losses incurred during the taxable year on insurance contracts" within the meaning of sec. 832(b) (5), I.R.C. 1954. 3. Held, that petitioner was entitled to the surtax exemption as…
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1. Held, that petitioner was not entitled to deduct or exclude 15 percent of the premiums received on title insurance as "unearned premiums" within the meaning of sec. 832(b)(4), I.R.C. 1954. 2. Held, that claims paid by petitioner pursuant to policies of title insurance were properly deducted as "losses incurred during the taxable year on insurance contracts" within the meaning of sec. 832(b) (5), I.R.C. 1954. 3. Held, that petitioner was entitled to the surtax exemption as provided in sec. 11(c), I.R.C. 1954, for the years in issue.
1Opinion of the Court
OPINION
Issue 1.- — Taxability of Premium Reserve
The petitioner contends that 15 percent of the premiums received on account of writing title insurance should properly be excluded or deducted from gross income as “unearned premiums” within the meaning of section 832 (b) (4). That section provides, in part, as follows:(4) PREMIUMS earned. — The term “premiums earned on insurance contracts during the taxable year” means an amount computed as follows:
(A) From the amount of gross premiums written on insurance contracts during the taxable year, deduct return premiums and premiums paid for…
2Cases cited12 opinions
- Commissioner of Internal Revenue v. Chelsea Products, IncCourt of Appeals for the Third Circuit · 1952
- Alinco Life Insurance Company v. The United StatesUnited States Court of Claims · 1967
- Bush Hog Mfg. Co. v. CommissionerUnited States Tax Court · 1964
- A. P. Green Export Company v. United StatesUnited States Court of Claims · 1960
- Barber-Greene Americas, Inc. v. CommissionerUnited States Tax Court · 1960
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3Cited by6 opinions
- Rocco, Inc. v. CommissionerUnited States Tax Court · 1979
- Title & Trust Co. v. CommissionerUnited States Tax Court · 1972
- Medical Defense Associates, Ltd. v. CommissionerUnited States Tax Court · 1984
- Modern Home Fire & Casualty Ins. Co. v. CommissionerUnited States Tax Court · 1970
- Rocco, Inc. v. CommissionerUnited States Tax Court · 1979
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