United States v. William T. Briggs and Myrtle Briggs

The sole question in this case is whether the living costs of a managing partner, and of his family, who is required under the partnership agreement to live at the hotel and manage the same are deductible business expenses of the partnership under Section 23(a) (1) of the Internal Revenue Code of 1939, 26 U.S. C.A. § 23(a) (1). The trial court in a proper case before it held that they were and the Government has appealed.

In Commissioner v. Doak, 4 Cir., 234 F.2d 704, and in Commissioner v. Moran, 8 Cir., the Fourth and Eighth Circuit Courts in well reasoned cases, upon facts indistinguishable…