Josephs v. Commissioner
United States Tax Court
Petitioner from 1930 until the taxable year was one of the administrators of an estate consisting in large part of the stock in a corporation formed after decedent's death to incorporate decedent's retail department store business. Petitioner was not related to the decedent and had no interest in the decedent's business. He was asked by several of the heirs to serve as administrator, and he accepted with the expectation of being paid for his services.
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Petitioner from 1930 until the taxable year was one of the administrators of an estate consisting in large part of the stock in a corporation formed after decedent's death to incorporate decedent's retail department store business. Petitioner was not related to the decedent and had no interest in the decedent's business. He was asked by several of the heirs to serve as administrator, and he accepted with the expectation of being paid for his services. In 1939 some of the heirs became dissatisfied with the administration and later filed suit against the petitioner and the other administrators,…
1Opinion of the Court
OPINION.
Arundell, Judge:
We need not decide whether the petitioner, acting as administrator, was engaged in carrying on a trade or business so as to make the payment of $10,000 in settlement of the suit and the $1,500 attorneys’ fees deductible under section 23 (a) (1) (A), because we have reached the conclusion that the expenses are deductible under section 23 (a) (2) of the Internal Revenue Code.1
Prior to the adoption of section 23 (a) (2) the statute made provision for deduction of expenses only if the taxpayer was engaged in carrying on a trade or business. In. earlier years, under a broad…
2Cases cited6 opinions
- Higgins v. CommissionerSupreme Court of the United States · 1941
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Cammack v. CommissionerUnited States Tax Court · 1945
- Clark v. CommissionerUnited States Tax Court · 1943
1 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Gale v. CommissionerUnited States Tax Court · 1949
- Josephs v. CommissionerUnited States Tax Court · 1949
- Kleinschmidt v. CommissionerUnited States Tax Court · 1949
- Fayen v. CommissionerUnited States Tax Court · 1960
- Beer v. United StatesDistrict Court, S.D. Alabama · 1955
10 more not listed; retrieve them via the Exa API.