Gunn v. Commissioner
United States Tax Court
In 1945, the Pine Street apartment building and realty was acquired by petitioner and his wife, Ann, and Jack and Annie Chow. The Gunns and Chows each owned a one-half interest. Ann Gunn was granted a final divorce from petitioner in 1961. The divorce judgment decreed that all the property of the Gunns was community property, and awarded to Fred and Ann, each, an undivided 25-percent interest in the Pine Street property out of their 50-percent interest.
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In 1945, the Pine Street apartment building and realty was acquired by petitioner and his wife, Ann, and Jack and Annie Chow. The Gunns and Chows each owned a one-half interest. Ann Gunn was granted a final divorce from petitioner in 1961. The divorce judgment decreed that all the property of the Gunns was community property, and awarded to Fred and Ann, each, an undivided 25-percent interest in the Pine Street property out of their 50-percent interest. The 50-percent interest of the Chows was recorded in the name of Annie Chow. The Pine Street property was operated as a business through a…
1Opinion of the Court
OPINION
The parties have treated the two determinations in issue as constituting one issue, appraiser’s fee of $500, and the court-awarded legal fee of $10,000. The question is whether these expenses are capital expenses to be offset against the long-term capital gain resulting from the sale in 1961 of the Pine Street property; or whether each expense is deductible, either under section 162(a), as an ordinary business expense, or under section 212 as an ordinary nonbusiness expense in connection with income-producing property or the collection of income.
The petitioner had the burden of proof…
2Cases cited20 opinions
- Lykes v. United StatesSupreme Court of the United States · 1952
- Harrison E. Spangler and Myrtle B. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
- Dwight A. Ward v. Commissioner of Internal Revenue, Hanna P. Ward v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- JONES'ESTATE v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1942
- Bowers v. LumpkinCourt of Appeals for the Fourth Circuit · 1944
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3Cited by11 opinions
- Rushing v. CommissionerUnited States Tax Court · 1972
- Juda v. CommissionerUnited States Tax Court · 1988
- Kwiat v. CommissionerUnited States Tax Court · 1992
- Jacobson v. CommissionerUnited States Tax Court · 1983
- Albergottie v. CommissionerUnited States Tax Court · 1973
6 more not listed; retrieve them via the Exa API.