Boagni v. Commissioner
United States Tax Court
Petitioner incurred expenses in two legal proceedings: (1) a declaratory judgment suit in which certain members of petitioner's family sought a determination that they owned 29 percent of an overriding royalty interest; and (2) a concursus action in which an oil company sought directions as to the disposition of proceeds of oil produced from property in which petitioner and members of his family held interests.
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Petitioner incurred expenses in two legal proceedings: (1) a declaratory judgment suit in which certain members of petitioner's family sought a determination that they owned 29 percent of an overriding royalty interest; and (2) a concursus action in which an oil company sought directions as to the disposition of proceeds of oil produced from property in which petitioner and members of his family held interests. Held, the portion of the legal expenses allocable to the declaratory judgment action is a nondeductible capital expenditure within the meaning of sec. 263(a), I.R.C. 1954, and the…
1Opinion of the Court
OPINION
Featherston, Judge:
Respondent determined a deficiency in the income tax of Vincent Boagni, Jr., for 1968 in the amount of $10,-813.86. The only issue for decision is whether petitioner may deduct, under section 212,1 legal fees incurred in two court proceedings, one a declaratory judgment action in which petitioner’s title to an overriding royalty interest was placed in dispute and the other involving a claim to overriding royalty payments deposited in the registry of a local court.
All the facts are stipulated, and are found accordingly.
Petitioner was a legal resident of Laguna Beach,…
2Cases cited23 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- United States v. GilmoreSupreme Court of the United States · 1963
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Woodward v. CommissionerSupreme Court of the United States · 1970
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3Cited by98 opinions
- Seligman v. CommissionerUnited States Tax Court · 1985
- Lucas v. CommissionerUnited States Tax Court · 1982
- Fort Howard Corp. v. CommissionerUnited States Tax Court · 1994
- Dye v. United StatesCourt of Appeals for the Tenth Circuit · 1997
- Redwood Empire Savings & Loan Association v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1980
93 more not listed; retrieve them via the Exa API.