Kasey v. Commissioner
United States Tax Court
Petitioner incurred litigation expenses in connection with his unsuccessful prosecution of an action for the "recovery of certain mining properties, for an accounting, and for damages." Such litigation involved as its principal issue the adjudication of title to the mining claims. Held: Expenditures in connection with petitioner's unsuccessful attempt to establish an interest in property are nondeductible personal expenses.
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Petitioner incurred litigation expenses in connection with his unsuccessful prosecution of an action for the "recovery of certain mining properties, for an accounting, and for damages." Such litigation involved as its principal issue the adjudication of title to the mining claims. Held: Expenditures in connection with petitioner's unsuccessful attempt to establish an interest in property are nondeductible personal expenses. Petitioner's request for an accounting and damages was wholly dependent upon and incident to the determination of title and does not therefore affect the character of such…
1Opinion of the Court
OPINION
The primary issue for decision concerns the deductibility of expenses related to litigation conducted by petitioner during the taxable years in question. These expenses consist primarily of travel costs incurred in the course of such litigation. Additional litigation-related expenses, also at issue in this case, consist of rent and utilities expenses allocable to the use of petitioner’s home and dormitory as a business office principally for the purpose of conducting litigation. Respondent maintains that the alleged litigation expenses constituted capital expenditures in defense of…
2Cases cited14 opinions
- Helvering v. TaylorSupreme Court of the United States · 1935
- JONES'ESTATE v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1942
- Safety Tube Corp. v. Commissioner of Internal Rev.Court of Appeals for the Sixth Circuit · 1948
- Safety Tube Corp. v. CommissionerUnited States Tax Court · 1947
- Beck v. CommissionerUnited States Tax Court · 1950
9 more not listed; retrieve them via the Exa API.
3Cited by63 opinions
- Cupp v. CommissionerUnited States Tax Court · 1975
- Magnon v. CommissionerUnited States Tax Court · 1980
- J. Bryant Kasey and Maryann Kasey v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1972
- Hosking v. CommissionerUnited States Tax Court · 1974
- Dillin v. CommissionerUnited States Tax Court · 1971
58 more not listed; retrieve them via the Exa API.