Butter-Nut Baking Co. v. Commissioner
United States Tax Court
The petitioner in 1938 realized gain from insurance proceeds above the adjusted basis of property destroyed by fire, forthwith used the entire amount in replacement of the destroyed assets, and in its income tax return for that year reported and was allowed the gain as nonrecognizable.
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The petitioner in 1938 realized gain from insurance proceeds above the adjusted basis of property destroyed by fire, forthwith used the entire amount in replacement of the destroyed assets, and in its income tax return for that year reported and was allowed the gain as nonrecognizable. In 1941 it claimed the amount of the realized gain as part of its invested capital as "accumulated earnings and profits as of the beginning of such taxable year," under section 718 (a) (4) of the Internal Revenue Code, as amended by the Second Revenue Act of 1940. Held, under section 501 (a) of the Second…
1Opinion of the Court
OPINION.
Disney, Judge-.
Under section 201 of the Second Revenue Act of 1940, petitioner was in the taxable year required to pay an excess profits tax. The computation of this tax involved a computation of the amount of the petitioner’s invested capital, and such computation of invested capital in turn required, under section 718 (a) (4) of the Internal Revenue Code, as amended by the Second Revenue Act of 1940,1 an ascertainment of “The accumulated earnings and profits as of the beginning of such taxable year,” for the reason that invested capital under the statute included such accumulated…
2Cited by10 opinions
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- Stratton Grain Co. v. ReisimerDistrict Court, E.D. Wisconsin · 1958
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