Estate of Walling v. Commissioner

OPINION

Raum, Judge:

The sole question for decision is whether the amounts totaling $57,567, expended by the Oliver Transportation Co. during the year 1957 represented deductible ordinary and necessary business expenses or nondeductible capital expenditures.

Section 162 of the Internal Nevenue Code of 1954 provides, in pertinent part, that “There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” Petitioners contend that the expenditures involved qualify for deduction under this section. They…