Anderson v. Commissioner
United States Board of Tax Appeals
1. Payment by taxpayer of a judgment for liability for death of another resulting from driving his automobile, held, under the circumstances, too remote to be deductible as a loss sustained in business. 2. Amounts received as consideration for mineral deeds in Oklahomaheld ordinary income and not capital gain.
1Opinion of the Court
OPINION.
Sternhagen :
The Commissioner determined a deficiency of $2,639 in petitioner’s income tax for 1929.
1. The petitioner claims the deduction of approximately $14,000 as a “ loss sustained during the taxable year and not compensated for by insurance or otherwise * * * incurred in trade or business.” (Revenue Act of 1928, sec. 23 (e) (1)). The amount claimed represents the uninsured part of his liability for damage for death resulting from his negligent driving of his own automobile. If allowable at all, such a loss must be the proximate result of the business (cf. Kornhauser v. United…
2Cases cited3 opinions
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Staten Island Rapid Transit Railway Co. v. Phoenix Indemnity Co.Supreme Court of the United States · 1930
- Murphy v. CommissionerUnited States Board of Tax Appeals · 1927
3Cited by6 opinions
- Letts v. CommissionerUnited States Board of Tax Appeals · 1934
- Dancer v. CommissionerUnited States Tax Court · 1980
- Anderson v. CommissionerUnited States Board of Tax Appeals · 1934
- Dancer v. CommissionerUnited States Tax Court · 1980
- Goforth v. CommissionerUnited States Board of Tax Appeals · 1935
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