International Life Ins. Co. v. Commissioner
United States Tax Court
Petitioner acquired health and accident insurance policies from an insolvent insurance company and assumed the liabilities thereunder. 1. Held, the amount of unearned premiums and existing liabilities under the policies should not be netted against the gross cost to determine the consideration paid. 2. Held, further, the unearned premiums constituted income to the petititioner. 3. Held, further, the existing liabilities were neither income to petitioner nor includable in…
Read the full summary
Petitioner acquired health and accident insurance policies from an insolvent insurance company and assumed the liabilities thereunder. 1. Held, the amount of unearned premiums and existing liabilities under the policies should not be netted against the gross cost to determine the consideration paid. 2. Held, further, the unearned premiums constituted income to the petititioner. 3. Held, further, the existing liabilities were neither income to petitioner nor includable in "losses incurred" under sec 832(b)(5), I.R.C. 1954. 4. Held, further, no part of the consideration paid may be amortized by…
1Opinion of the Court
Tannenwald, Judge:
The respondent determined deficiencies in the income tax of petitioner for the years 1960 and 1961 in the amounts of $31,704.08 and $54,339.10. The issue for our consideration is the existence and extent of a net operating loss in 1957, which it is conceded can be carried over to the subsequent taxable years. The resolution of this issue depends upon whether petitioner erroneously reported certain unearned premiums and liabilities assumed as income in 1957 and whether it can amortize the consideration paid for health and accident insurance policies, or any part thereof.1
FINDI…
2Cases cited23 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Michaels v. CommissionerUnited States Tax Court · 1949
- Manhattan Co. of Virginia, Inc. v. CommissionerUnited States Tax Court · 1968
- Commissioner of Internal Revenue v. Maurice L. KillianCourt of Appeals for the Fifth Circuit · 1963
18 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Union Bankers Ins. Co. v. CommissionerUnited States Tax Court · 1975
- Kentucky Cent. Life Ins. Co. v. CommissionerUnited States Tax Court · 1972
- Standard Life & Accident Insurance Company v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1976
- Security Benefit Life Insurance v. United StatesDistrict Court, D. Kansas · 1980
- Gerling International Ins. Co. v. CommissionerUnited States Tax Court · 1986
8 more not listed; retrieve them via the Exa API.