BHA Enterprises, Inc. v. Commissioner
United States Tax Court
Petitioners operated radio stations KAVR and KAVR-FM. In 1973, the FCC brought an action against petitioner which, if successful, would have precluded petitioner from operating its business. Petitioner incurred substantial legal expenses in successfully resisting the FCC's action.
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Petitioners operated radio stations KAVR and KAVR-FM. In 1973, the FCC brought an action against petitioner which, if successful, would have precluded petitioner from operating its business. Petitioner incurred substantial legal expenses in successfully resisting the FCC's action. Held, the legal expenses were ordinary and necessary and had a business nexus, and since the origin and character of the FCC litigation proximately resulted from the taxpayer's business activities and not from the acquisition or disposition of property, the expenses are deductible under sec. 162, I.R.C. 1954.…
1Opinion of the Court
Nims, Judge:
Respondent determined deficiencies in petitioner’s income tax for the taxable years ending April 30, 1974, and April 30, 1975, in the respective amounts of $9,267 and $5,364. The issue for decision is whether petitioner, a radio broadcasting corporation, is entitled to deduct litigation expenses incurred in connection with proceedings instituted by the Federal Communications Commission to revoke its broadcasting licenses.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of facts together with the_ attached exhibits are incorporated herein by this reference.
The…
2Cases cited10 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Commissioner v. TellierSupreme Court of the United States · 1966
- Woodward v. CommissionerSupreme Court of the United States · 1970
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3Cited by10 opinions
- Newberry v. CommissionerUnited States Tax Court · 1981
- Von Hafften v. CommissionerUnited States Tax Court · 1981
- Estate of Allen v. CommissionerUnited States Tax Court · 1982
- Hauge v. Comm'rUnited States Tax Court · 2005
- Anderson-Tully Co. v. CommissionerUnited States Tax Court · 1984
5 more not listed; retrieve them via the Exa API.