Seidler v. Commissioner
United States Tax Court
Held: Amounts expended in defending and settling suits brought to set aside a trust of which petitioner was trustee and remainderman, were not deductible by petitioner as expenses and losses incurred in trade or business or as nonbusiness expenses or losses incurred in a transaction entered into for profit.
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The sole issue is whether the petitioner may deduct, under the provisions of section 23 of the Internal Revenue Code,1 the amounts of $1,659.51 as litigation expenses in 1946 and $17,700 spent in 1947, which latter figure represents settlement payments of $12,700 and $5,000 in counsel fees paid in connection with the trust litigation.
It is petitioner’s contention that the amounts expended were ordinary and necessary trade or business expenses under section 23 (a) (1) (A). It is sufficient to note upon this point that the petitioner was not in the business of acting…
2Cases cited7 opinions
- Heiner v. TindleSupreme Court of the United States · 1928
- Weir v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1940
- National Engraving Co. v. CommissionerUnited States Tax Court · 1944
- Josephs v. CommissionerUnited States Tax Court · 1949
- Kleinschmidt v. CommissionerUnited States Tax Court · 1949
2 more not listed; retrieve them via the Exa API.
3Cited by22 opinions
- Epp v. CommissionerUnited States Tax Court · 1982
- Lewis v. CommissionerUnited States Tax Court · 1956
- Sergievsky v. McNamaraDistrict Court, S.D. New York · 1955
- Boyd v. CommissionerUnited States Tax Court · 1957
- Grabien v. CommissionerUnited States Tax Court · 1967
17 more not listed; retrieve them via the Exa API.