L. A. Thompson S. R. Co. v. Commissioner
This text of 2 B.T.A. 664 (L. A. Thompson S. R. Co. v. Commissioner) is published on Counsel Stack Legal Research, covering United States Board of Tax Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
[665]*665OPINION.
Our decision is controlled by that in Appeal of Pan-American Hide Co., 1 B. T. A. 1249. The taxpayer endeavors to distinguish this appeal for the reason that the failure of the taxpayer to carry insurance was involuntary, as no company would assume the risk. The distinction is not fundamental.
It may be conservative accounting to set aside a portion of the income to a fund out of which a fire may be provided against in advance, but deductions permitted by the law in determining the taxable net income present a quite different question. The amount of the reserve does not constitute an ordinary and necessary business expense and is therefore not deductible. Appeal of William J. Ostheimer, 1 B. T. A. 18; Appeal of Consolidated Asphalt Co., 1 B. T. A. 79; Appeal of Uvalde Co., 1 B. T. A. 932.
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2 B.T.A. 664, 1925 BTA LEXIS 2327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-a-thompson-s-r-co-v-commissioner-bta-1925.