Guill v. Commissioner
United States Tax Court
P, an independent contractor, commenced a lawsuit against D, alleging that D was liable to P for breach of contract and conversion arising out of P's work for D. As to the conversion claim, the jury awarded P actual and punitive damages, together with interest and costs.
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P, an independent contractor, commenced a lawsuit against D, alleging that D was liable to P for breach of contract and conversion arising out of P's work for D. As to the conversion claim, the jury awarded P actual and punitive damages, together with interest and costs. P received the award in 1992, and, from this amount, P paid his attorneys their fees and the court costs (collectively, legal costs). P deducted the legal costs on his 1992 Schedule C, Profit or Loss From Business, reporting that the costs arose out of his sole-proprietor business, and he reported the actual damages on that…
1Opinion of the Court
OPINION
Laro, Judge-.
This case is before the Court fully stipulated. See Rule 122. George W. Guill petitioned the Court to redetermine deficiencies of $100,916 and $434 in his 1992 and 1993 Federal income tax, respectively. Following the parties’ concessions, the primary issue left to decide is whether all of the attorney’s fees and court costs (collectively, legal costs) paid by petitioner in the successful prosecution of his claim of conversion are expenses of his sole-proprietor business; petitioner was awarded actual damages, punitive damages, costs, and interest. We hold they are. Section…
2Cases cited18 opinions
- United States v. GilmoreSupreme Court of the United States · 1963
- United States v. BurkeSupreme Court of the United States · 1992
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Commissioner v. SchleierSupreme Court of the United States · 1995
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
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