Pioneer Real Estate Co. v. Commissioner
United States Board of Tax Appeals
1. An award for severance damages to property remaining after a condemnation, where no special benefit assessment is levied, held to be applied against, and in reduction of, the basis of the remaining property, rather than added to the gain upon the property taken. 2. The amount added to a condemnation award as interest is not ordinary income.
1Opinion of the Court
*888OPINION.
Abttndell:
The principal issue is whether the entire award of $340,-572.50, received by petitioner as compensation for the land taken and as consequential damages to the remaining land and building, is taxable gain to the extent that it exceeds the cost of the land taken ($21,-674.42) plus the expenses of the condemnation proceeding ($11,646.03). Respondent, in accordance with G. C. M. 20322, 1938-2 C. B. 167,1 determined the issue in the affirmative and held that a profit of $307,-252.05 was realized upon the condemnation award.
Petitioner, however, contends that the award was in…
2Cases cited2 opinions
- Morrison v. CaliforniaSupreme Court of the United States · 1934
- Hort v. CommissionerSupreme Court of the United States · 1941
3Cited by10 opinions
- Vaira v. CommissionerUnited States Tax Court · 1969
- Lawrence E. Gilbertz and Verna Ann Gilbertz v. United StatesCourt of Appeals for the Tenth Circuit · 1987
- The E. R. Hitchcock Co. v. United StatesCourt of Appeals for the Second Circuit · 1975
- Sirbo Holdings, Inc. v. CommissionerUnited States Tax Court · 1974
- Norby v. CommissionerUnited States Tax Court · 1961
5 more not listed; retrieve them via the Exa API.