Hoover Motor Express Company, Inc. v. United States

The issue in this case is whether fines paid by a truck operator for violation of state laws prescribing weight limitations are deductible from gross income as ordinary and necessary business expenses under Section 23(a) (1) (A) of the Internal Revenue Code of 1939, 26 U.S.C.A. § 23(a) (1) (A), which provides that, in computing net iijcome, there shall be allowed as deduction^ all the ordinary and necessary expenses jpaid or incurred during the taxable year in carrying on any trade or business. The district court held that such filies were not deductible under the above-mentioned section of…