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petitioners' two adult children took over Mrs. Ruckman's normal
duties during the period of her cancer treatments.
In 1986, Ruckman, Inc., purchased a 1986 Freightliner truck
for $86,000 and began to depreciate it over a 7-year period using
the straight line method. In May 1990, the truck was involved in
an accident and sustained substantial damage, rendering it
inoperable. As a consequence of the damage to the truck,
Ruckman, Inc., initially received $37,000 in insurance proceeds
in 1990 and later an additional $11,000, bringing the total
received to $48,000 in that year.2 Ruckman, Inc.'s adjusted
basis in the truck at the close of the year preceding the year of
the accident (12/31/89) was $42,576.3 Petitioners considered the
2Mr. Ruckman testified, and petitioners on brief sought a
finding of fact to which respondent did not object, that Ruckman,
Inc., initially received $37,000 from its insurance company, and
later an amount bringing the total settlement to $48,000, as a
result of the damage to the truck. With respect to the time of
receipt, the record establishes that $37,000 of the insurance
proceeds was received in 1990. Respondent so determined in the
notice of deficiency, and petitioners nowhere dispute it. The
record is not entirely clear as to when the additional $11,000 in
insurance proceeds, which brought the total to $48,000, was
received. Petitioners' proposed finding of fact is that the
insurance company "later" settled for a total payment of $48,000
after initially paying $37,000. Given that the accident occurred
in May of 1990, and the significance of the truck and the dollar
amounts involved to Ruckman, Inc.'s business, the likelihood is
great that the remaining insurance proceeds were received before
the end of 1990, more than 7 months later. We accordingly find,
in the absence of any further evidence, that all insurance
proceeds were received in 1990.
3Respondent so determined in the notice of deficiency, and
petitioners have not disputed this figure.
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