National Engraving Co. v. Commissioner
United States Tax Court
Held, that attorney fees expended in defense of a suit involving a portion of the proceeds of an insurance policy are allocable to a class of income, insurance proceeds, which is wholly exempt from taxes by virtue of section 22 (b) (1), I. R. C., and are specifically made nondeductible in computing net income by section 24 (a) (5), I. R. C.
1Opinion of the Court
OPINION.
Van Fossan, -Judge-.
Petitioner contends that the excess of the insurance proceeds (substantially $10,000) above the amount paid by it for the Nellesen stock became capital in its hands; that the attorney fees expended in defense of the suit were incurred in the conservation of property held for the production of income and are deductible as expenses; and that, in any event, the fees were deductible business expenses. Counsel cites section 23 (a) (2), I. R. C., referring to nontrade or nonbusiness expenses, and Kornhauser v. United States, 276 U. S. 145.
The respondent contends that…
2Cases cited2 opinions
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Van Wart v. CommissionerSupreme Court of the United States · 1935
3Cited by19 opinions
- Rafter v. CommissionerUnited States Tax Court · 1973
- Seidler v. CommissionerUnited States Tax Court · 1952
- Cotton States Fertilizer Co. v. CommissionerUnited States Tax Court · 1957
- W. Horace Williams Co. v. CocrehamSupreme Court of Louisiana · 1948
- Hogan v. CommissionerUnited States Tax Court · 1944
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