Tracy v. Commissioner
United States Board of Tax Appeals
1. Petitioner, to enhance his prestige as a motion picture actor through better cooperation of studio employees with whom he was engaged, paid or distributed to them, in accordance with the custom in that industry, certain tips or gratuities.
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1. Petitioner, to enhance his prestige as a motion picture actor through better cooperation of studio employees with whom he was engaged, paid or distributed to them, in accordance with the custom in that industry, certain tips or gratuities. Held, under the circumstances, ordinary and necessary expenses of his business as a professional actor. 2. Petitioner's disbursements for meals and lodging in California while working in motion pictures were for his personal living expenses, and therefore are not deductible as traveling expenses. 3. Petitioner, who maintained a home and provided the…
1Opinion of the Court
*580OPINION.
Arnold :
The deductions claimed by the petitioner are allowable, if at all, under section 23 (a) of the Revenue Act of 1934, the pertinent portions of which are set forth in the margin.1
It is petitioner’s contention that the bestowal of gratuities on the employees of different studios is an ordinary and necessary expense of a featured motion picture actor. He further contends that his ex*581penditures for meals and lodging while he was away from home in pursuit of his business as a professional actor are deductible as ordinary and necessary expenses of his business. There is no dispute as…
2Cases cited1 opinion
- Welch v. HelveringSupreme Court of the United States · 1933
3Cited by21 opinions
- Barnhill v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1945
- Coburn v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1943
- Wallace v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1944
- McGee v. NeeCourt of Appeals for the Eighth Circuit · 1940
- Mathews v. CommissionerUnited States Tax Court · 1961
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