De Van v. Commissioner
United States Board of Tax Appeals
Where a note is given by a husband to his wife to induce her to dismiss her pending suit for divorce and return with her children and resume marital relations with him, interest paid thereon to the wife is properly deducted from the husband's gross income as interest paid on indebtedness.
1Opinion of the Court
*583OPINION.
ARNOLD:
The year 1927 is controlled by the Revenue Act of 1926, and the years 1928 and 1929 by the Revenue Act of 1928. However, the provisions applicable are the same in both acts. Petitioner, in claiming the deductions, insists the amounts in question fall within section 214 (a) (2) of the Revenue Act of 1926, and section 23 (b) of the Revenue Act of 1928: “All interest paid or accrued within the taxable year on indebtedness.”
Respondent, in denying the deductions, claims the payments in question fall within section 215 (a) (1) of the Revenue Act of 1926, and section 24 (a) (1) of the…
2Cases cited2 opinions
- Adams v. . AdamsNew York Court of Appeals · 1883
- Bowden v. BowdenCalifornia Supreme Court · 1917
3Cited by2 opinions
- Woodward v. United StatesDistrict Court, N.D. Iowa · 1952
- De Van v. CommissionerUnited States Board of Tax Appeals · 1936