Lucas v. Commissioner
United States Tax Court
Held: 1. Costs of converting electrical appliances and refitting carpets and drapes are not deductible as moving expenses incident to the acquisition of a lease. Secs. 217(b)(1)(E) and 217(b)(2)(D), I.R.C. 1954. 2. Petitioners failed to show that the origin of the claim which resulted in their legal expenses was the conservation of property held for the production of income; deduction disallowed.
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Held: 1. Costs of converting electrical appliances and refitting carpets and drapes are not deductible as moving expenses incident to the acquisition of a lease. Secs. 217(b)(1)(E) and 217(b)(2)(D), I.R.C. 1954. 2. Petitioners failed to show that the origin of the claim which resulted in their legal expenses was the conservation of property held for the production of income; deduction disallowed. Sec. 212(2), I.R.C. 1954. 3. Cost of professional dues which would have been reimbursed by petitioner-husband's employer if he had asked, are not deductible. Sec. 162(a), I.R.C. 1954.
1Opinion of the Court
Chabot, Judge:
Respondent determined a deficiency in Federal individual income tax against petitioners for 1976 in the amount of $7,516.05. After settlement of other issues, the issues for decision are:(1) Whether, under section 217,1 petitioners are entitled to deduct as moving expenses the costs of (a) converting electrical applicances to U.S. standard frequency and voltage and (b) refitting carpets and drapes;(2) Whether petitioners are entitled to deduct legal fees and witness transportation costs in connection with litigation; and(3) Whether petitioners are entitled to deduct professional…
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