Boehm v. Commissioner
United States Board of Tax Appeals
1. Irrevocable assignment of a cause of action for breach of contract and of right to any money collected under judgment in the action, which was due and payable under contract before the assignment, divests the assignor of all right, title, and interest in the cause of action and money paid under judgment subsequently.
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1. Irrevocable assignment of a cause of action for breach of contract and of right to any money collected under judgment in the action, which was due and payable under contract before the assignment, divests the assignor of all right, title, and interest in the cause of action and money paid under judgment subsequently. Held, money collected in a judgment on the action by the assignee is not taxable to the assignor. 2. Held, certain expenditures for dues and expenses in social, civic, and political clubs are not deductible as business expenses under section 23(a) of the Revenue Act of 1928…
1Opinion of the Court
*1108OPINION.
HarROn:
Issue (1). — The claim which the petitioner originally had against the United Power Laundries, Inc., for $25,000 was for a “bonus” or additional interest relating to a loan to this corporation. It was not a claim for payment for personal services. The amount in question was due and payable April 29, 1929, and on that date the petitioner had a vested interest in the claim for payment which was not in any way dependent upon any performance of duties by him. When the corporation defaulted in the payment the petitioner. had a cause of action against the corporation for breach of…
2Cases cited2 opinions
- Blair v. CommissionerSupreme Court of the United States · 1937
- Gilbert v. . AckermanNew York Court of Appeals · 1899
3Cited by54 opinions
- Henry v. CommissionerUnited States Tax Court · 1961
- Chapman v. CommissionerUnited States Tax Court · 1967
- Andress v. CommissionerUnited States Tax Court · 1969
- V. H. Monette & Co. v. CommissionerUnited States Tax Court · 1965
- Ryman v. CommissionerUnited States Tax Court · 1969
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