Lehman Co. of America, Inc. v. Commissioner
United States Tax Court
1. Petitioner is entitled to allocate insurance proceeds received in the taxable year ended January 31, 1947, from the destruction by fire of certain of its properties, between the capital and noncapital assets destroyed, and the amount allocable to each such class of property is determined. 2. Petitioner is entitled to a deduction of the amount of $ 2,349 in the taxable year ended January 31, 1947, representing a contribution to the Cannelton Flood Wall Fund. 3. Petitioner…
Read the full summary
1. Petitioner is entitled to allocate insurance proceeds received in the taxable year ended January 31, 1947, from the destruction by fire of certain of its properties, between the capital and noncapital assets destroyed, and the amount allocable to each such class of property is determined. 2. Petitioner is entitled to a deduction of the amount of $ 2,349 in the taxable year ended January 31, 1947, representing a contribution to the Cannelton Flood Wall Fund. 3. Petitioner is entitled to an excess profits tax credit carry-back to the fiscal year ended January 31, 1945, in an amount to be…
1Opinion of the Court
OPINION.
Leech, Judge:
The first two issues will be considered together. They involve the right of petitioner to allocate the proceeds of insurance received, as the result of a fire, between its capital and non-capital assets destroyed.
On its income and excess profits tax returns for the fiscal year ended January 31, 1947, petitioner claimed as. an ordinary loss the amount of $96,823.34, with respect to the insurance received for its inventory loss, and reported a long term capital gain with respect to the depre-ciable assets such as buildings, machinery, and equipment in the sum of $97,342.38.
T…
2Cases cited3 opinions
- Watson v. CommissionerUnited States Tax Court · 1950
- McCoy v. CommissionerUnited States Tax Court · 1950
- Battle Creek Food Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1950
3Cited by2 opinions
- Harold G. Williams v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1961
- Lehman Co. of America, Inc. v. CommissionerUnited States Tax Court · 1951