Commissioner v. Gillette Motor Transport, Inc.Annotate this Case
364 U.S. 130 (1960)
U.S. Supreme Court
Commissioner v. Gillette Motor Transport, Inc., 364 U.S. 130 (1960)
Commissioner v. Gillette Motor Transport, Inc.
Argued April 21, 1960
Decided June 27, 1960
364 U.S. 130
Respondent trucking company ceased operations during World War II because of a strike, and the Director of the Office of Defense Transportation took possession and assumed control of its business but left title to its properties in respondent, which resumed normal operations and functioned under the control of a federal manager until termination of possession and control by the Government. The Motor Carrier Claims Commission determined that, by assuming possession and control of respondent's facilities, the Government had deprived it of the right to determine freely what use was to be made of them, and it awarded to respondent as compensation a sum representing the fair rental value of its facilities during the period of government control.
Held: under the Internal Revenue Code of 1939, this award constituted ordinary income, and not a capital gain resulting from an "involuntary conversion" of respondent's capital assets consisting of real or depreciable personal property used in its trade or business, within the meaning of §117(j). Pp. 364 U. S. 130-136.
265 F.2d 648, reversed.
Official Supreme Court caselaw is only found in the print version of the United States Reports. Justia caselaw is provided for general informational purposes only, and may not reflect current legal developments, verdicts or settlements. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or information linked to from this site. Please check official sources.