Newberry v. Commissioner
United States Tax Court
During 1975, petitioners received business interruption proceeds under two insurance policies. These proceeds were intended to compensate for earnings lost as a result of a fire which suspended operation of petitioner's grocery store business. Held, the business interruption proceeds are not derived from "a trade or business carried on," and thus do not constitute earnings from self-employment within the meaning of sec. 1402(a), I.R.C. 1954.
1Opinion of the Court
OPINION
Nims, Jvdge\
Respondent determined a deficiency in petitioners’ income tax for the year 1975 in the amount of $810. The issue for decision is whether amounts petitioners received during 1975 as business interruption insurance proceeds constitute “net earnings from self-employment” as defined in section 1402(a).1
All of the facts in this case have been stipulated. The stipulation and attached exhibits are incorporated herein by reference.
At the time the petition herein was filed, petitioners resided in Donalsonville, Ga.
During the year 1974, petitioner Max G. Newberry (petitioner) owned…
2Cases cited12 opinions
- Jarecki v. G. D. Searle & Co.Supreme Court of the United States · 1961
- Primuth v. CommissionerUnited States Tax Court · 1970
- Central Illinois Public Service Co. v. United StatesSupreme Court of the United States · 1978
- Cain v. United StatesCourt of Appeals for the Fifth Circuit · 1954
- Massillon-Cleveland-Akron Sign Co. v. CommissionerUnited States Tax Court · 1950
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- Jackson v. CommissionerUnited States Tax Court · 1997
- Braddock v. CommissionerUnited States Tax Court · 1990
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