Backer v. Commissioner
United States Board of Tax Appeals
The expense of defending an indictment for perjury growing out of the taxpayer's business held, upon the facts, not to be a deductible ordinary and necessary business expense.
1Opinion of the Court
*215OPINION.
James:
The question is whether under all the circumstances set forth in our findings of fact the amount actually paid by the decedent taxpayer to defend himself against the criminal prosecution for perjury is an ordinary and necessary business expense or is a personal expense. If it is the former, it is deductible in determining his net income; if the latter, it is not deductible.
*216The Commissioner asserts that it is a personal expense, because, as we understand, the crime charged is necessarily a personal crime and the defense thereto can not in the nature of things be a matter of…
2Cited by32 opinions
- Madden v. CommissionerUnited States Tax Court · 1972
- Reakirt v. CommissionerUnited States Board of Tax Appeals · 1934
- Grossman & Sons v. CommissionerUnited States Tax Court · 1967
- Fleischman v. CommissionerUnited States Tax Court · 1966
- Freedman v. CommissionerUnited States Tax Court · 1961
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