Renville v. Department of Revenue

Carlisle B. Roberts, Judge.

Plaintiffs appealed from the defendant’s Order No. 1-71-32 which required the payment of an Oregon personal income tax deficiency in the principal sum of $2,129.50 for the 1969 tax year.

In 1969, the bowling alley owned by the plaintiffs, husband and wife, was destroyed by fire and they were inclemnified by insurance proceeds. The insurance payments were in excess of the plaintiffs’ adjusted basis in the property and plaintiffs realized a taxable capital gain on this involuntary conversion.

Upon filing their original 1969 federal and Oregon personal income tax…