Segall v. Commissioner
United States Tax Court
1. Year of Deduction. -- Amount paid by individual petitioner in 1950 to his controlled corporation equal to the amount of a legal fee paid by the corporation in 1947 for legal services rendered to the petitioner, held not to be an allowable deduction for the year 1950. 2. Issue not Pleaded. -- Issue as to adjustment under 1939 Code section 3801 not raised by assignment of error in petition is not properly before the Court for decision.
1Opinion of the Court
Atkins, Judge:
A deficiency in the amount of $2,686.74 in income tax determined by the respondent for the calendar year 1950 results entirely from the disallowance of a deduction claimed on the return in the amount of $10,278.57 as representing a legal fee paid. The respondent held that since the amount was not paid by the petitioner as a legal fee, but rather was paid by him to his controlled corporation as a result of the payment of a legal fee in the same amount by the corporation in 1947, the payment was not deductible by the petitioner, but constituted a contribution to the capital of the…
2Cases cited4 opinions
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
- McAdams v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1952
- Camp Wolters Enterprises, Inc. v. CommissionerUnited States Tax Court · 1954
- Commissioner of Internal Revenue v. Hymie Schwartz and Jeannette L. SchwartzCourt of Appeals for the Fifth Circuit · 1956
3Cited by19 opinions
- Graf v. CommissionerUnited States Tax Court · 1983
- Thomson v. CommissionerUnited States Tax Court · 1964
- Edelman v. CommissionerUnited States Tax Court · 1962
- M. O. Rife and Maidee W. Rife v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1966
- Granan v. CommissionerUnited States Tax Court · 1971
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