Joseph J. Tallal, Jr. v. Commissioner of Internal Revenue

GEE, Circuit Judge.

This is a tax deficiency case. Appellant Tallal argues that the tax court erred in finding that Cumberland, the partnership in which Tallal was a limited partner, was not engaged in coal mining with the primary objective and intent of making a profit and therefore erred in upholding the Commissioner’s assessment of a deficiency in Tallal’s 1976 tax return. We affirm.

All expenses of every business transaction are not necessarily deductible under 26 U.S.C. § 162(a). Before any such deduction is allowed, it must be shown that the activity or enterprise was undertaken with the…