Holmes v. Commissioner
United States Board of Tax Appeals
1. Early in the taxable year 1933 some of the directors succeeded in displacing petitioner as president and chairman of the executive committee of the Texas Corporation, and on May 5, 1933, he resigned his chairmanship of the board.
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1. Early in the taxable year 1933 some of the directors succeeded in displacing petitioner as president and chairman of the executive committee of the Texas Corporation, and on May 5, 1933, he resigned his chairmanship of the board. Thereafter, during the remainder of the taxable year, petitioner paid from his personal funds $30,577.01 in expenses in the form of clerk hire, communication, stationery, supplies, postage, printing, publicity, and legal services, in notifying and making recommendations to the 90,000 stockholders of the corporation to bring about action which he thought should be…
1Opinion of the Court
*870OPINION.
Black:
The question in this proceeding is whether the expenditures totaling $30,577.01 were ordinary and necessary business expenses as petitioner contends, or personal expenses as respondent contends. The former are deductible; the latter are not. The pertinent sections of the Revenue Act of 1932 are as follows:
SEC. 23. DEDUCTIONS PROM GROSS INCOME.
In computing net income there shall be allowed as deductions:(a) Expenses. — All the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business * * *.
SEC. 24. ITEMS NOT DEDUCTIBLE.(a)…
2Cases cited5 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Flint v. Stone Tracy Co.Supreme Court of the United States · 1911
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Burnet v. ClarkSupreme Court of the United States · 1932
- Dalton v. BowersSupreme Court of the United States · 1932
3Cited by9 opinions
- Primuth v. CommissionerUnited States Tax Court · 1970
- Buscaglia v. Tribunal de ContribucionesSupreme Court of Puerto Rico · 1950
- Van Pelt v. CommissionerUnited States Tax Court · 1950
- Buscaglia v. Tax Court of Puerto RicoSupreme Court of Puerto Rico · 1950
- Holmes v. CommissionerUnited States Board of Tax Appeals · 1938
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