Graphic Press, Inc. v. Commissioner
United States Tax Court
Under threat of condemnation, the State of California acquired petitioner's land, building, and certain machinery, which had a combined fair market value of $ 317,808. Petitioner concurrently agreed to retain and remove the bulk of its heavy printing machinery, thereby waiving its right under local law to sell the same to the State. The State paid petitioner $ 725,000, which petitioner reinvested and on its return treated as proceeds of an involuntary conversion.
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Under threat of condemnation, the State of California acquired petitioner's land, building, and certain machinery, which had a combined fair market value of $ 317,808. Petitioner concurrently agreed to retain and remove the bulk of its heavy printing machinery, thereby waiving its right under local law to sell the same to the State. The State paid petitioner $ 725,000, which petitioner reinvested and on its return treated as proceeds of an involuntary conversion. Held, a recital in the condemnation agreement that the $ 725,000 was paid for the physical assets acquired does not preclude the…
1Opinion of the Court
Hall, Judge:
Respondent determined a deficiency of $188,248 in petitioner’s Federal income tax for tbe taxable period July 1 to December 6, 1967. Tbe issue for decision is wbetber petitioner, which received and reinvested a $725,000 condemnation award, must include in income for that period $392,184, or any part thereof, on the ground that such amount was paid for something other than property involuntarily converted as a result of condemnation.
FINDINGS OP PACT
Some of the facts have been stipulated and are found accordingly.
Petitioner, Graphic Press, Inc., is a California corporation which had…
2Cases cited18 opinions
- Helvering v. GowranSupreme Court of the United States · 1937
- Peter Vaira and Mary L. Vaira v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1971
- Haverty Realty & Inv. Co. v. CommissionerUnited States Tax Court · 1944
- Boatman v. CommissionerUnited States Tax Court · 1959
- Lacy v. CommissionerUnited States Tax Court · 1963
13 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- Estate of Craft v. CommissionerUnited States Tax Court · 1977
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- Tiefenbrunn v. CommissionerUnited States Tax Court · 1980
- Graphic Press, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1975
- Asjes v. CommissionerUnited States Tax Court · 1980
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