TAXATION OF WAR LOSS RECOVERIES.
The Revenue Act of 1942 established legislation regulating the manner of taking war losses. The right to deduct such losses in computing taxable income had already existed under the casualty-loss provisions of the income tax law. After the World War I, property losses were difficult to establish, because there was a lack of specific provisions in the law and regulations, and this gave rise to delays, complications, and numerous inequities. Section 127 of the 1942 Act was provided to avoid a repetition of the previous experience. The taking of deductions was facilitated by allowing them on the presumption that the property had been destroyed or seized. The major point to be observed is that the new provisions made it possible for taxpayers to get the benefit of the loss deemed sustained in an enemy country at the approximate time deemed sustained, without actually proving the destruction or seizure of the property involved. At the time of writing the 1942 Act, it was recognized that after the war many properties deemed destroyed would be recovered in whole or in part.
- DOI
- 10.2308/tar-7050686
- Volume
- 21 (3)
- Pages
- 283-288
- Language
- en
- Export
- BibTeX
- Sources
- openalex crossref