Dustin v. Commissioner
United States Tax Court
1. Held, that petitioners failed to prove that a debt for advances made to a partnership in which Herbert was a limited partner became worthless in 1961 and petitioners were not entitled to a bad debt deduction under sec. 166(a)(1), I.R.C. 1954, for 1961. 2. Held, that legal, engineering, and accounting fees incurred by a subchapter S corporation in connection with hearings before the FCC regarding the transfer of control of a radio station license constitute capital…
Read the full summary
1. Held, that petitioners failed to prove that a debt for advances made to a partnership in which Herbert was a limited partner became worthless in 1961 and petitioners were not entitled to a bad debt deduction under sec. 166(a)(1), I.R.C. 1954, for 1961. 2. Held, that legal, engineering, and accounting fees incurred by a subchapter S corporation in connection with hearings before the FCC regarding the transfer of control of a radio station license constitute capital expenditures and are not deductible as ordinary and necessary business expenses. 3. Held, that petitioners' failure to file…
1Opinion of the Court
Drennen, Judge:
Respondent determined a deficiency and an addition to tax respectively of $4,286.77 and $383.76 with respect to petitioners’ income tax for the year 1961.
The issues for decision are: (1) Whether loans made to a partnership became worthless in the year 1961, thereby entitling petitioners to a bad debt deduction; (2) whether certain legal and accounting fees incurred by a subchapter S corporation in connection with proceedings before the Federal Communications Commission constitute capital expenditures or ordinary and necessary business expenses; and (3) whether the late filing…
2Cases cited22 opinions
- United States v. S. S. White Dental Manufacturing Co.Supreme Court of the United States · 1927
- Morton v. CommissionerUnited States Board of Tax Appeals · 1938
- Dallmeyer v. CommissionerUnited States Tax Court · 1950
- Morton v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1940
- Radio Station WBIR, Inc. v. CommissionerUnited States Tax Court · 1959
17 more not listed; retrieve them via the Exa API.
3Cited by114 opinions
- Crocker v. CommissionerUnited States Tax Court · 1989
- Herbert W. Dustin and Kathleen C. Dustin v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1972
- Kean v. CommissionerUnited States Tax Court · 1988
- Mueller v. CommissionerUnited States Tax Court · 1973
- Merriam v. CommissionerUnited States Tax Court · 1995
109 more not listed; retrieve them via the Exa API.