Bartholomew v. Commissioner
United States Tax Court
1. During the taxable years the taxpayer, a minor, paid, pursuant to orders of court, attorneys' fees and court costs of numerous lawsuits involving his current and future earnings as a juvenile actor and his right thereto or the conservation of his estate, which consisted of his prior earnings.
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1. During the taxable years the taxpayer, a minor, paid, pursuant to orders of court, attorneys' fees and court costs of numerous lawsuits involving his current and future earnings as a juvenile actor and his right thereto or the conservation of his estate, which consisted of his prior earnings. Held, the fees and costs are deductible under section 23 (a) of the Internal Revenue Code, as amended, either as ordinary and necessary business expenses, or as ordinary and necessary expenses of a nontrade or nonbusiness nature, except for minor amounts allocable to tax-free interest under section 24…
1Opinion of the Court
OPINION.
Aknold, Judge:
The principal question, namely, the deductibility of attorneys’ fees and costs, has been restricted in scope by the stipulations and agreement of counsel. The parties are agreed that the attorneys’ fees and court costs involved herein were paid during the taxable years pursuant to orders of court, and that the amounts so paid were reasonable. Their dispute is over the propriety of the deductions under the applicable statutory provisions, section 23, Revenue Act of 1938, and section 23, Internal Revenue Code, as amended by section 121, Revenue Act of 1942.1 Section 121…
2Cases cited6 opinions
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Freuler v. HelveringSupreme Court of the United States · 1934
- Heller v. CommissionerUnited States Tax Court · 1943
- Van Wart v. CommissionerSupreme Court of the United States · 1935
- Longhorn Portland Cement Co. v. CommissionerUnited States Tax Court · 1944
1 more not listed; retrieve them via the Exa API.
3Cited by23 opinions
- Kroll v. CommissionerUnited States Tax Court · 1968
- Bruton v. CommissionerUnited States Tax Court · 1947
- Lewis v. CommissionerUnited States Tax Court · 1956
- Coke v. CommissionerUnited States Tax Court · 1951
- Hochschild v. CommissionerUnited States Tax Court · 1946
18 more not listed; retrieve them via the Exa API.