McAdams v. Commissioner
United States Tax Court
Held, under the facts, that co-owner of two oil leases was not entitled to deduct in taxable years 1944 and 1945 sums paid by him in those years for his portion of his share of drilling expenses incurred in 1941, which he was unable to pay in that year and which were then paid in his behalf by another co-owner.
1Opinion of the Court
OPINION-
Johnson, Judge:
The respondent contends that payment of $21,500 in 1944 and of $2,225.59 in 1945 by petitioner to Luse were repayments of loans made by Luse to petitioner in 1941, which loans were used to pay drilling and development costs incurred by petitioner in 1941, and, as such, these amounts were deductible by petitioner in computing his Federal income tax for the year 1941, and not in 1944 and 1945.
The petitioner points to the provisions of section 43 of the Internal Revenue Code, providing that deductions must be taken for the taxable year in which “paid or accrued”, or “paid…
2Cases cited4 opinions
- Eckert v. BurnetSupreme Court of the United States · 1931
- Helvering v. PriceSupreme Court of the United States · 1940
- Estate of Koen v. CommissionerUnited States Tax Court · 1950
- Smith v. RampyCourt of Appeals of Texas · 1946
3Cited by10 opinions
- Beck v. Comm'rUnited States Tax Court · 1980
- Barry L. Battelstein and Jerry E. Battelstein v. Internal Revenue ServiceCourt of Appeals for the Fifth Circuit · 1980
- Barry L. Battelstein and Jerry E. Battelstein v. Internal Revenue ServiceCourt of Appeals for the Fifth Circuit · 1980
- Bouterie v. CommissionerCourt of Appeals for the Fifth Circuit · 1994
- Ronald R. Levy and Esther Levy, Petitioners-Appellants/cross-Appellees v. Commissioner of Internal Revenue, Respondent-Appellee/cross-AppellantCourt of Appeals for the Ninth Circuit · 1984
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