International Boiler Works Co. v. Commissioner
United States Board of Tax Appeals
1. Taxpayer's factory was destroyed by fire in July, 1919. In addition to specific insurance on its property, it had a policy of use-and-occupancy insurance, under which the insurer was liable "for the actual loss sustained of net profits on the business which is thereby prevented," measured by a fixed amount per day for the number of days of suspension of business. Taxpayer's fiscal year ended September 30, when business was still suspended.
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1. Taxpayer's factory was destroyed by fire in July, 1919. In addition to specific insurance on its property, it had a policy of use-and-occupancy insurance, under which the insurer was liable "for the actual loss sustained of net profits on the business which is thereby prevented," measured by a fixed amount per day for the number of days of suspension of business. Taxpayer's fiscal year ended September 30, when business was still suspended. Subsequently, on November 13, parties agreed on amount of use-and-occupancy insurance, which was paid on November 26. Held, Commissioner correctly…
1Opinion of the Court
*288OPINION.
Steenhagen: The first dispute arises out of the taxpayer’s policy of so-called use-and-occupancy insurance from which, in 1920, it received proceeds amounting to $14,999.94. Of this amount the Commissioner regarded $7,500.02 as income accrued to the taxpayer in the fiscal year 1919. The taxpayer contends that no part of this amount accrued to it in the taxable year, and, secondarily, that if it be held that there was an accrual of any part of this amount in the taxable year, such accrual was not income because the proceeds of such insurance are in their nature not income.
The policy…
2Cases cited1 opinion
- United States v. Supplee-Biddle Hardware Co.Supreme Court of the United States · 1924
3Cited by14 opinions
- McCabe v. CommissionerUnited States Tax Court · 1970
- Descartes v. Tribunal de Contribuciones de Puerto RicoSupreme Court of Puerto Rico · 1953
- Oppenheim's, Inc. v. KavanaghDistrict Court, E.D. Michigan · 1950
- United Development Company v. United StatesDistrict Court, E.D. Missouri · 1962
- Maloof v. CommissionerUnited States Tax Court · 1975
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