Citizens Bank of Weston v. Commissioner
United States Tax Court
Prior to a flood in June 1950, petitioner stored all of its banking records in the basement of its building. The basement was inundated during the flood and petitioner's records were destroyed, but no physical damage to the building occurred. Petitioner has not used the basement for the storage of records since the flood of 1950 for fear that another flood may some day occur which would again destroy its records.
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Prior to a flood in June 1950, petitioner stored all of its banking records in the basement of its building. The basement was inundated during the flood and petitioner's records were destroyed, but no physical damage to the building occurred. Petitioner has not used the basement for the storage of records since the flood of 1950 for fear that another flood may some day occur which would again destroy its records. On its income tax return for 1950, it deducted a substantial loss based on the alleged decline in the fair market value of its bank building as a result of the flood. The respondent…
1Opinion of the Court
OPINION.
Rioe, Judge:
The petitioner bases its claim for a deductible loss on the ground that the Utility of its basement was completely destroyed by the flood which occurred in 1950 because “it is no longer safe or advisable to use the basement as a banking facility until the flood waters of West Fork River are controlled by a high dam and/or a series of small dams” since another flood may occur at any time. It recognizes that no physical damage, as such, occurred to the building, but contends that its fair market value immediately after the flood was considerably less than its value…
2Cases cited5 opinions
- United States v. S. S. White Dental Manufacturing Co.Supreme Court of the United States · 1927
- Weiss v. WeinerSupreme Court of the United States · 1929
- W. B. Davis & Son, Inc. v. CommissionerUnited States Tax Court · 1945
- Mid-State Products Co. v. CommissionerUnited States Tax Court · 1954
- Burdan v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1939
3Cited by39 opinions
- A. J. Industries, Inc. v. United StatesCourt of Appeals for the Ninth Circuit · 1974
- Peterson v. CommissionerUnited States Tax Court · 1958
- Burke v. CommissionerUnited States Tax Court · 1959
- Pulvers v. CommissionerUnited States Tax Court · 1967
- J. G. Boswell Co. v. CommissionerUnited States Tax Court · 1960
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