Marquis v. Commissioner
United States Tax Court
Petitioner, a travel agent, regularly transacted a large portion of her business with clients which were exempt as charitable organizations under sec. 170. At the end of each year, she made payments to them keyed to the amount, character, and profitability of such business. Held, under all the circumstances, such payments were not charitable contributions and, therefore, the limitation of sec. 162(b) did not preclude deductibility in full as business expenses.
1Opinion of the Court
OPINION
The decision in this case turns upon a determination as to the scope of the limitation contained in section 162(b).4 Petitioner contends that her cash payments to charitable clients were part and parcel of her travel agency business and therefore did not constitute contributions or gifts deductible only under section 170, with the result that the limitation does not apply. Respondent counters with the assertion that the legislative history of section 162(b) and its predecessor sections, his own regulations, and a prior decision of this Court in Wm. T. Stover Co., 27 T.C. 434 (1956),…
2Cases cited13 opinions
- Commissioner v. DubersteinSupreme Court of the United States · 1960
- Harold Dejong and Marjorie J. Dejong v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- United States v. Transamerica Corporation, Transamerica Corporation v. United StatesCourt of Appeals for the Ninth Circuit · 1968
- Perlmutter v. CommissionerUnited States Tax Court · 1965
- Channing v. United StatesDistrict Court, D. Massachusetts · 1933
8 more not listed; retrieve them via the Exa API.
3Cited by32 opinions
- Southern Pacific Transp. Co. v. CommissionerUnited States Tax Court · 1980
- Foster v. Comm'rUnited States Tax Court · 1983
- Allen v. CommissionerUnited States Tax Court · 1989
- Edgar v. CommissionerUnited States Tax Court · 1971
- Seed v. CommissionerUnited States Tax Court · 1971
27 more not listed; retrieve them via the Exa API.