Shapiro v. Commissioner
United States Board of Tax Appeals
The petitioner, a resident of Massachusetts, borrowed certain sums of money from his wife, also a resident of Massachusetts, agreeing to repay the sums borrowed and also to pay her interest thereon. The agreement was subsequently evidenced by an interest-bearing promissory note given by the petitioner to his wife.
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The petitioner, a resident of Massachusetts, borrowed certain sums of money from his wife, also a resident of Massachusetts, agreeing to repay the sums borrowed and also to pay her interest thereon. The agreement was subsequently evidenced by an interest-bearing promissory note given by the petitioner to his wife. Held, that the interest paid during the taxable year by the petitioner to his wife pursuant to their agreement is an allowable deduction in determining his net income.
1Opinion of the Court
OPINION.
Tkammell :
This proceeding is for the redetermination of a deficiency in income tax of $5,475.83 for 1929. The only matter in controversy is the correctness of the respondent’s action in disallowing as a deduction taken by the petitioner the amount of $14,898.92 representing interest paid by petitioner to his wife on money borrowed from her. The other issue raised by the pleadings has been abandoned by the petitioner.
The proceeding was submitted upon a stipulation of facts, pertinent portions of which are as follows:
In 1925 petitioner, being a resident of Braintree, Massachusetts,…
2Cases cited5 opinions
- Poe v. SeabornSupreme Court of the United States · 1930
- Riley v. CommissionerUnited States Board of Tax Appeals · 1933
- Sunlin v. CommissionerUnited States Board of Tax Appeals · 1927
- Coombs v. CommissionerUnited States Board of Tax Appeals · 1932
- Hamilton v. CommissionerUnited States Board of Tax Appeals · 1927
3Cited by2 opinions
- Woodward v. United StatesDistrict Court, N.D. Iowa · 1952
- Shapiro v. CommissionerUnited States Board of Tax Appeals · 1934