Farris v. Commissioner
United States Tax Court
1. Partnership Estate -- Deductions. -- Under State law, upon death of a partner the business was administered as "a partnership estate" in the Probate Court. Held, that certain expenses, including administrator's fees, attorneys' fees, court costs, etc., incurred in the administration and approved by the Probate Court, and being reasonable in amount, were deductible as ordinary and necessary expenses of the partnership.
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1. Partnership Estate -- Deductions. -- Under State law, upon death of a partner the business was administered as "a partnership estate" in the Probate Court. Held, that certain expenses, including administrator's fees, attorneys' fees, court costs, etc., incurred in the administration and approved by the Probate Court, and being reasonable in amount, were deductible as ordinary and necessary expenses of the partnership. Section 162 and section 23 (a) (2), Internal Revenue Code. 2. Partnership -- Capital Contribution -- Net Income. -- One of three partners made the original capital…
1Opinion of the Court
OPINION.
Johnson, Judge:
Respondent determined a deficiency of $3,705.22 in petitioners’ income tax for 1948. The following issues are presented:(1) Did the Commissioner err in disallowing $13,085.66 of the $13,678.40 claimed as ordinary and necessary expense of the partnership (Royer-Farris Drilling Company), and allocating the sum disallowed as an offset to the sale price of capital assets in determining the capital gains of the partnership ?(2) Did petitioners receive $12,500 in taxable income in connection with the liquidation of the Royer-Farris Drilling Company?
Petitioners alleged error…
2Cases cited8 opinions
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Civiletti v. CommissionerUnited States Tax Court · 1944
- Civiletti v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1945
- Goodwin's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1953
- Bingham v. CommissionerUnited States Tax Court · 1943
3 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Moore Trust v. CommissionerUnited States Tax Court · 1968
- Erdman v. CommissionerUnited States Tax Court · 1962
- Erdman v. CommissionerUnited States Tax Court · 1962
- Erdman v. CommissionerUnited States Tax Court · 1962
- Farris v. CommissionerUnited States Tax Court · 1954
2 more not listed; retrieve them via the Exa API.