Spring City Foundry Co. v. Commissioner
Brief

CitationSpring City Foundry Co. v. Commissioner, 292 U.S. 182, 54 S. Ct. 644, 78 L. Ed. 1200, 1934 U.S. LEXIS 705, 4 U.S. Tax Cas. (CCH) P1276, 13 A.F.T.R. (P-H) 1164, 1934-1 C.B. 281, 1934 P.H. P1150 (U.S. Apr. 30, 1934) Brief Fact Summary. Petitioner sold goods to a customer on an open account annually. Before the end of the year, the customer went bankrupt and Petitioner was not paid the full amount owed. Synopsis of Rule of Law. In manufacturing, merchandising, or mining, gross income means the total sales, less the cost of goods sold, plus any income from investments and from incident ...

Hornung v. Commissioner
Brief

CitationHornung v. Commissioner, 47 T.C. 428, 1967 U.S. Tax Ct. LEXIS 153 (T.C. 1967) Brief Fact Summary. Petitioner is a well-known professional football player for the Green Bay Packers. He received a Corvette as an award for his performance in the championship game. Synopsis of Rule of Law. All items which constitute gross income are to be included for the taxable year in which actually or constructively received. ...

Commissioner v. Boylston Market Ass
Brief

CitationComm’r v. Boylston Mkt. Ass’n, 131 F.2d 966, 1942 U.S. App. LEXIS 3004, 42-2 U.S. Tax Cas. (CCH) P9820, 30 A.F.T.R. (P-H) 512, 144 A.L.R. 528 (1st Cir. Dec. 11, 1942) Brief Fact Summary. Taxpayer chose to deduct his prepaid insurance during the year it was paid instead of on a prorated basis. The insurance covered and three year period and the Board of Tax Appeals ruled that the annual deductions must be calculated on a prorated basis like a capital expense. Synopsis of Rule of Law. When the life of the asset extends beyond the taxable year payments are to be prorated. ...

Charles F. Kahler v. Commissioner
Brief

CitationKahler v. Comm’r, 18 T.C. 31, 1952 U.S. Tax Ct. LEXIS 229 (T.C. Apr. 4, 1952) Brief Fact Summary. The findings of facts are omitted from the text. Petitioner received a commission check on December 31, 1946. Petitioner argued that the income from the check should be counted in tax year 1947, not 1946. Synopsis of Rule of Law. All items of gross income shall be included in the taxable year in which they were received by the taxpayer. ...

Williams v. Commissioner
Brief

CitationWilliams v. Commissioner, 28 T.C. 1000, 1957 U.S. Tax Ct. LEXIS 115 (T.C. 1957) Brief Fact Summary. Petitioners are in the business of providing information on parcels of timberland to potential buyers. They provided information to one buyer in 1951 who was unable to pay for the information at the time. In return he issued a note in the amount of $7,166 to Petitioners payable at a later date. Synopsis of Rule of Law. A note received only as security or as evidence of indebtedness and not as payment may not be regarded as income at the time of receipt. ...

Cowden v. Commissioner
Brief

CitationCowden v. Commissioner, 289 F.2d 20, 1961 U.S. App. LEXIS 4850, 61-1 U.S. Tax Cas. (CCH) P9382, 7 A.F.T.R.2d (RIA) 1160, 14 Oil & Gas Rep. 309 (5th Cir. Apr. 12, 1961) Brief Fact Summary. Frank Cowden, Sr. and his wife leased the mineral rights to Stanolind Oil in exchange for “bonus: or “advance royalty” payments. The payments were not conditioned on production but were deferred over a period of years. The Cowdens assigned the payments to a bank for face value. Synopsis of Rule of Law. Parties may enter into legal agreements for the purpose of reducing taxes, ...

Raymon Gerard v. Commissioner
Brief

CitationGerard v. Commissioner, 37 T.C. 826, 1962 U.S. Tax Ct. LEXIS 202 (T.C. 1962) Brief Fact Summary. Petitioners daughter suffered from cystic fibrosis. Exposure to dry and dusty air was dangerous for her. The Petitioners purchased a $1,300 central air unit to help deal with the daughter’s illness. Synopsis of Rule of Law. A medical care expenditure which is a permanent addition to a taxpayer’s home may be deducted as a medical expense if it does not increase the value of the home. ...

Sinyard v. Commissioner
Brief

CitationSinyard v. Commissioner of Internal Revenue, 268 F.3d 756, 2001 U.S. App. LEXIS 20886, 86 Fair Empl. Prac. Cas. (BNA) 1417, 81 Empl. Prac. Dec. (CCH) P40,747, 2001-2 U.S. Tax Cas. (CCH) P50,645, 88 A.F.T.R.2d (RIA) 6034, 2001 Cal. Daily Op. Service 8378, 2001 Daily Journal DAR 10342 (9th Cir. Sept. 25, 2001) Brief Fact Summary. James Sinyard became part of a class action lawsuit against his former employer for age discrimination. He was forced to resign at the age of 49. The case settled for $35 million. Synopsis of Rule of Law. The discharge by a third person of an obligation to h ...

Cramer v. Commissioner
Brief

CitationCramer v. Commissioner, 55 T.C. 1125, 1971 U.S. Tax Ct. LEXIS 162 (T.C. 1971) Brief Fact Summary. Petitioner took property tax deductions on three different properties. One she owned outright, one was owned by her mother, and one she had sold to William Osborn but retained title. Synopsis of Rule of Law. Real property taxes are deductible only by person upon whom they are imposed. ...

Commissioner v. Tellier
Brief

CitationComm’r v. Tellier, 383 U.S. 687, 86 S. Ct. 1118, 16 L. Ed. 2d 185, 1966 U.S. LEXIS 2912, 66-1 U.S. Tax Cas. (CCH) P9319, 17 A.F.T.R.2d (RIA) 633 (U.S. Mar. 24, 1966) Brief Fact Summary. Respondent was in the business of underwriting public stock offerings. He was charged and convicted of multiple counts of securities fraud and mail fraud. He expended $22,964 in his criminal defense and deducted these on his tax return. Synopsis of Rule of Law. The federal income tax is a tax on net income and not a sanction against wrongdoing. ...

Lowry v. United States
Brief

CitationLowry v. United States, 384 F. Supp. 257, 1974 U.S. Dist. LEXIS 5996, 74-2 U.S. Tax Cas. (CCH) P9821, 34 A.F.T.R.2d (RIA) 6206 (D.N.H. Nov. 1, 1974) Brief Fact Summary. Plaintiffs sought a refund of taxes paid after not being allowed to take deductions for the care and maintenance of their former summer residence. After using their summer house for several years, they stopped using it and put it on the market for sale, but never attempted to rent it. Synopsis of Rule of Law. No deduction shall be allowed for personal, living, or family expenses. ...

J. Simpson Dean v. Commissioner
Brief

Citation35 T.C. 1083, 1961 U.S. Tax Ct. Brief Fact Summary. Petitioners were majority owners of a holding company, Nemours Corporation. The corporation gave an interest free loan in excess of $2 million to Petitioners. Synopsis of Rule of Law. Interest free loans result in no taxable gain to the borrower. ...

Meyer J. Fleischman v. Commissioner
Brief

CitationFleischman v. Commissioner, 45 T.C. 439, 1966 U.S. Tax Ct. LEXIS 140 (T.C. 1966) Brief Fact Summary. Petitioner and his wife entered into an antenuptial agreement. The agreement specified that in the event of divorce, Petitioner would pay $5,000 and his wife would release all interests in his property. Synopsis of Rule of Law. All ordinary and necessary expenses paid or incurred during the taxable year producing or collecting income, or managing, conserving, or maintaining property held for the production of income are deductible. ...

William C. Horrmann v. Commissioner
Brief

Citation17 T.C. 903, 1951 U.S. Tax Ct. Brief Fact Summary. Petitioner inherited a house from his mother. He redecorated the house and made it his residence for two years. After he moved out, the attempted to rent the property unsuccessfully and eventually sold it. Synopsis of Rule of Law. A deduction for a long term capital loss must be from a transaction entered into for profit. ...

Bowers v. Lumpkin
Brief

CitationBowers v. Lumpkin, 140 F.2d 927, 1944 U.S. App. LEXIS 4080, 44-1 U.S. Tax Cas. (CCH) P9200, 32 A.F.T.R. (P-H) 201, 151 A.L.R. 1336 (4th Cir. S.C. Feb. 4, 1944) Brief Fact Summary. Plaintiff filed suit to reversed and IRS determination that legal fees were not an ordinary and necessary business expense. Plaintiff spent in excess of $26,000 defending her purchase of stock of a corporation owning sale and distribution rights of coca-cola syrup. Synopsis of Rule of Law. Legal expenses defending title to property are not ordinary and necessary expenses of carrying on a trade or business ...

Surasky v. United States
Brief

CitationSurasky v. United States, 325 F.2d 191, 1963 U.S. App. LEXIS 3571, 63-2 U.S. Tax Cas. (CCH) P9841, 12 A.F.T.R.2d (RIA) 6005 (5th Cir. Fla. Nov. 27, 1963) Brief Fact Summary. Taxpayer purchased 4000 shares of common stock in Montgomery Ward. He and other stockholders were concerned with the direction of the company and formed a committee to advocate for change. Taxpayer spent $17,000 in support of the committee’s activities. Synopsis of Rule of Law. Ordinary and necessary business expenses for the management, conservation, or maintenance of property held for the production of ...

Simon v. Commissioner
Brief

CitationSimon v. Commissioner, 68 F.3d 41, 1995 U.S. App. LEXIS 28823, 95-2 U.S. Tax Cas. (CCH) P50,552, 76 A.F.T.R.2d (RIA) 6911 (2d Cir. Oct. 13, 1995) Brief Fact Summary. The Simons purchased two antique bows for use as musicians. They attempted to deduct depreciation of the bows because of the wear and tear from the use in concerts. These bows retained value after they could no longer be used because they were collector’s items. Synopsis of Rule of Law. In order to be considered depreciable property it must have a determinable useful life. ...

Higgins v. Commissioner
Brief

CitationHiggins v. Commissioner, 312 U.S. 212, 61 S. Ct. 475, 85 L. Ed. 783, 1941 U.S. LEXIS 1267, 41-1 U.S. Tax Cas. (CCH) P9233, 25 A.F.T.R. (P-H) 1160, 1941-1 C.B. 340, 1941 P.H. P62,020 (U.S. Feb. 3, 1941) Brief Fact Summary. Petitioner lived in Paris, France and maintained a New York office for managing a personal portfolio. He hired a staff and rented office space and attempted to deduct these costs as business expenses. Synopsis of Rule of Law. All ordinary and necessary expenses paid or incurred during a tax year in carrying on a trade or business are deductible. ...

Coughlin v. Commissioner
Brief

CitationCoughlin v. Commissioner, 203 F.2d 307, 1953 U.S. App. LEXIS 4186, 53-1 U.S. Tax Cas. (CCH) P9321, 43 A.F.T.R. (P-H) 672, 1953 P.H. P72,463 (2d Cir. Apr. 14, 1953) Brief Fact Summary. Petitioner worked at a law firm and specialized in tax matters. He attend a course in tax matters sponsored by New York University. He spent $305 in expenses attending the course and sought to deduct this as a business expense. Synopsis of Rule of Law. Necessary expenses incurred in carrying on a trade or business are deductible if they are directly connected with or proximately resulted from the prac ...

Sharp v. United States
Brief

CitationSharp v. United States, 191 U.S. 341, 24 S. Ct. 114, 48 L. Ed. 211, 1903 U.S. LEXIS 1455 (U.S. Nov. 30, 1903) Brief Fact Summary. Plaintiffs were equal partners in a partnership that bought a Beechcraft airplane. During the ownership of the plane, it was used 26% of the time for business purposes and the remaining was for personal use. The partnership sold the plane in 1954 for $35,380. Synopsis of Rule of Law. The loss recognized on the sale of property is the excess of the adjusted basis over the amount realized from the sale of the property. ...

Andrews v. Commissioner
Brief

CitationAndrews v. Commissioner, 931 F.2d 132, 1991 U.S. App. LEXIS 7117, 91-1 U.S. Tax Cas. (CCH) P50,211, 67 A.F.T.R.2d (RIA) 881 (1st Cir. Apr. 24, 1991) Brief Fact Summary. Edward Andrews sought a re-determination from the Tax Court after the Commissioner did not allow him to deduct personal living expenses related to a second business. He lived and worked in Massachusetts building pools part of the year, and lived and worked racing and breeding horses in Florida during the rest of the year. Synopsis of Rule of Law. Taxable income should not include the cost of producing that income. ...

Starr
Brief

CitationEstate of Starr v. Commissioner, 274 F.2d 294, 1959 U.S. App. LEXIS 2808, 60-1 U.S. Tax Cas. (CCH) P9191, 5 A.F.T.R.2d (RIA) 572 (9th Cir. Dec. 29, 1959) Brief Fact Summary. Taxpayer leased a sprinkler system for a term of five years with the option to renew for an additional five years. Absence the renewal, lessor had six months to remove the sprinkler system. Synopsis of Rule of Law. If rent is paid to produce title eventually then the rental agreement may be treated as a sale. ...

Hill v. Commissioner
Brief

CitationHill v. Commissioner, 181 F.2d 906, 1950 U.S. App. LEXIS 4099, 50-1 U.S. Tax Cas. (CCH) P9310, 39 A.F.T.R. (P-H) 435, 1950 P.H. P72,554 (4th Cir. May 19, 1950) Brief Fact Summary. Taxpayer was a teacher of twenty-seven years in Virginia. Her teaching certificate was set to expire unless she took college credit or an examination over a set of books. She chose to take college credits and deducted the expenses as business expenses. Synopsis of Rule of Law. Ordinary and necessary expenses paid or incurred in carrying on a trade or business during a tax year are deductible. ...

Harolds Club v. Commissioner
Brief

CitationHarolds Club v. Commissioner, 340 F.2d 861, 1965 U.S. App. LEXIS 6829, 65-1 U.S. Tax Cas. (CCH) P9198, 15 A.F.T.R.2d (RIA) 241 (9th Cir. Jan. 19, 1965) Brief Fact Summary. Harolds Club was a gaming operation owned by Raymond Smiths’ two sons. His two sons agreed to pay him $10,000 a year plus 20% of the profits for Smith to manage the operation. Harolds Club attempted to deduct the compensation from its income. Synopsis of Rule of Law. Contingent compensation may be allowed as a deduction if it is the result of a free bargain between employer and the individual and if the co ...

Rosenspan v. United States
Brief

CitationRosenspan v. United States, 438 F.2d 905, 1971 U.S. App. LEXIS 11774, 71-1 U.S. Tax Cas. (CCH) P9241, 27 A.F.T.R.2d (RIA) 707 (2d Cir. N.Y. Feb. 18, 1971) Brief Fact Summary. Plaintiff was a traveling jewelry salesman. He traveled up to 300 days a year and did not have a permanent residence. He stayed in hotels, motels and inns and occasionally with family. Synopsis of Rule of Law. Traveling expenses while away from home may be deducted when they are ordinary and necessary expenses in carrying on a trade or business. ...