Spreckels v. Commissioner
United States Board of Tax Appeals
1. Petitioner's guardian paid from his funds an amount for attorney's fees to protect petitioner's interest in his father's estate. Held, this expense is a personal and not a business expense and is not deductible. Van Wart v. Commissioner,295 U.S. 112. 2. A trust received income from dividends in the year 1932 to be paid to petitioner October 30, 1932, if petitioner was living.
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1. Petitioner's guardian paid from his funds an amount for attorney's fees to protect petitioner's interest in his father's estate. Held, this expense is a personal and not a business expense and is not deductible. Van Wart v. Commissioner,295 U.S. 112. 2. A trust received income from dividends in the year 1932 to be paid to petitioner October 30, 1932, if petitioner was living. Petitioner received the income thus held for him from January 1 to October 20. Held, the petitioner and not the trust is taxable for this income in 1932 under the provisions of section 162(b), Revenue Act of 1932.
1Opinion of the Court
*712OPINION.
HaeROn:(1) The amount of $625 attorney’s fees paid from petitioner’s funds by his guardian in 1932 was a personal expense, which is not deductible. The expenditure was not a business expense. Clara Hill Lindley, 26 B. T. A. 742; affd., 63 Fed. (2d) 807. This issue involves the same question as was before the Supreme Court in Van Wart v. Commissioner, 295 U. S. 112, and that opinion of the Court is controlling here. The respondent’s determination in this issue is sustained.(2) The second issue in this proceeding involves the question whether a trust or a beneficiary of a trust is…
2Cases cited3 opinions
- Irwin v. GavitSupreme Court of the United States · 1925
- Helvering v. ButterworthSupreme Court of the United States · 1933
- Van Wart v. CommissionerSupreme Court of the United States · 1935
3Cited by5 opinions
- Spreckels v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1939
- County Nat. Bank & Trust Co. v. HelveringCourt of Appeals for the D.C. Circuit · 1941
- Spreckels v. CommissionerUnited States Board of Tax Appeals · 1938
- Spreckels v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1939
- Towne v. CommissionerUnited States Board of Tax Appeals · 1940