Denholm & McKay Co. v. Commissioner
United States Board of Tax Appeals
An amount paid by the taxpayer to its lessor as consideration for the cancellation of a lease, held, an ordinary and necessary business expense.
1Opinion of the Court
*448OPINION.
Marquette:
The taxpayer claims that on September 1, 1916, it entered into a written lease with the Bealty Co. for certain real estate, at a stipulated rental, and that on February 21, 1919, it paid for the cancellation of said lease, the amount of $60,128.08, which is deductible from its gross income for the year in which it was paid, as an ordinary and necessary business expense. The Commissioner contends that a written lease was never in fact entered into and that even if it was actually executed, it was voidable by the taxpayer and therefore the amount paid for the cancellation…
2Cases cited2 opinions
- Corsicana Nat. Bank of Corsicana v. JohnsonSupreme Court of the United States · 1919
- Marcy v. Guanajuato Development Co.District Court, D. New Jersey · 1915
3Cited by5 opinions
- U.S. Bancorp v. CommissionerUnited States Tax Court · 1998
- John M. Briley and Dorothy D. Briley v. United StatesCourt of Appeals for the Sixth Circuit · 1962
- Bleichroeder, Bing & Co. v. CommissionerUnited States Tax Court · 1953
- U.S. Bancorp and Its Consolidated Subsidiaries v. CommissionerUnited States Tax Court · 1998
- U.S. Bancorp v. CommissionerUnited States Tax Court · 1998