Webb v. Commissioner
United States Tax Court
The petitioner, a real estate broker, paid an initiation fee to join a listing service. Membership in the listing service yielded him benefits in his business; such benefits were expected to continue until the petitioner's membership was terminated. Held, the initiation fee was a capital expenditure, and hence was not deductible under either sec. 162(a) or sec. 212(1), I.R.C. 1954.
1Opinion of the Court
'Simpson, Judge:
The respondent determined a deficiency of $486.82 in the income tax of the petitioners for the taxable year 1965. The issue for decision is whether a real estate broker may deduct $2,000 which he paid as an initiation fee to the Homeowners Multiple Listing Service, Inc., as an ordinary and necessary business expense, or as an expense for the production of income.
FINDINGS OF FACT
Some of the facts have been stipulated, and those facts are so found.
The petitioners, Ralph B. Webb and Elizabeth S. Webb, are husband and wife, who maintained tbeir legal residence in Williston Park,…
2Cases cited13 opinions
- Bull v. United StatesSupreme Court of the United States · 1935
- United States v. Victor H. And Elsie Akin, Fred C. And Alice M. Kluver, E.F. And Gladys MunroeCourt of Appeals for the Tenth Circuit · 1957
- Acer Realty Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1942
- Ryman v. CommissionerUnited States Tax Court · 1969
- Wilson v. Comm'rUnited States Tax Court · 1961
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3Cited by9 opinions
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- Harman v. CommissionerUnited States Tax Court · 1979
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