Hurt v. Commissioner
United States Board of Tax Appeals
1. Attorney fees incurred and paid by the decedent in the defense of a lawsuit brought against him as a director of a corporation may be deducted as ordinary and necessary business expenses under section 214(a)(1) of the Revenue Acts of 1921 and 1924. 2. A loss sustained by the decedent in 1921 by reason of the worthlessness of capital stock of a corporation of which he was the majority stockholder and director does not constitute a "net loss" under the statute.
1Opinion of the Court
MRS. A. B. HURT, JOEL HURT, JR., AND CONTINENTAL TRUST COMPANY, EXECUTORS, ESTATE OF JOEL HURT, DECEASED, PETITIONERS, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Hurt v. Commissioner
Docket No. 28099.
United States Board of Tax Appeals
30 B.T.A. 653; 1934 BTA LEXIS 1286;
May 8, 1934, Promulgated
1. Attorney fees incurred and paid by the decedent in the defense of a lawsuit brought against him as a director of a corporation may be deducted as ordinary and necessary business expenses under section 214(a)(1) of the Revenue Acts of 1921 and 1924.
2. A loss sustained by the decedent in 1921 by…
2Cases cited1 opinion
- Hurt v. CommissionerUnited States Board of Tax Appeals · 1934