Dancer v. Commissioner
United States Tax Court
Petitioner, a trainer and driver of trotting horses, was involved in an automobile accident while traveling between the farm where he had trained horses that morning and his principal office, located in his home, where he intended to conduct business that day. Held, the amount paid by petitioner to settle the lawsuit arising out of the car accident was a deductible business expense under sec. 162, I.R.C. 1954.
1Opinion of the Court
Nims, Judge:
Respondent determined a deficiency in income tax for the year 1974 in the amount of $15,998.80.
The only issue for our determination is whether $40,000 paid by Harold Dancer in 1974 in settlement of a civil action brought about as a consequence of an automobile accident is deductible in that year as an ordinary and necessary business expense under section 162(a).1 Respondent determined that the expenses were nondeductible personal expenses and he disallowed the deduction on that basis.
FINDINGS OF FACT
Some of the facts were stipulated and are so found. The stipulation of facts and…
2Cases cited9 opinions
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Curphey v. CommissionerUnited States Tax Court · 1980
- Green v. CommissionerUnited States Tax Court · 1972
- Backer v. CommissionerUnited States Board of Tax Appeals · 1924
- Anderson v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1936
4 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Adams v. CommissionerUnited States Tax Court · 1982
- Christman v. CommissionerUnited States Tax Court · 1989
- Dancer v. CommissionerUnited States Tax Court · 1980
- Dogali v. CommissionerUnited States Tax Court · 1995
- Gilliam v. CommissionerUnited States Tax Court · 1986
5 more not listed; retrieve them via the Exa API.