Cohen v. Commissioner
United States Tax Court
Capital Expenditures or Ordinary and Necessary Expense -- Defense of Title -- Sec. 23 (a). -- Amounts paid for attorneys' fees and litigation expense by the owner of property, a defendant in a suit by a wife claiming that the property belonged to her estranged husband who had transferred it to the taxpayer in fraud of her claim, were capital expenditures not deductible as expenses under section 23 (a).
1Opinion of the Court
opinion.
Murdock, Judge:
The Commissioner determined deficiencies in income tax of $1,737.22 for 1949 and $269.34 for 1950 and an addition of $262.05 for 1950 under section 294 (d) (2). The only issue for decision is whether legal fees of $5,000 for 1949 and $545 for 1950 were capital expenditures for the defense of title to property or were ordinary and necessary expenses under section 23 (a) (1) or (2). Substantially all of the facts were stipulated and are found as stipulated.
The petitioners, husband and wife, filed their joint returns for the taxable years with the collector of internal…
2Cases cited6 opinions
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
- JONES'ESTATE v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1942
- Rassenfoss v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1946
- Murphy Oil Co. v. BurnetCourt of Appeals for the Ninth Circuit · 1932
- Farmer v. CommissionerCourt of Appeals for the Tenth Circuit · 1942
1 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Ramos v. CommissionerUnited States Tax Court · 1962
- Estate of Goodall v. CommissionerUnited States Tax Court · 1965
- Carper v. CommissionerUnited States Tax Court · 1962
- Cohen v. CommissionerUnited States Tax Court · 1955
- Parkway Realty Corp. v. CommissionerUnited States Tax Court · 1959
2 more not listed; retrieve them via the Exa API.