Martino v. Commissioner
United States Tax Court
Petitioner ran for reelection to the St. Louis Board of Aldermen during 1971 as the incumbent Democratic candidate. After apparently winning the Democratic primary by a narrow margin, petitioner was forced to defend his victory against an election contest suit filed by his opponent. Legal fees of $ 8,000 were paid to counsel preparing his defense. Petitioner subsequently deducted this sum from his 1971 adjusted gross income as a miscellaneous itemized deduction.
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Petitioner ran for reelection to the St. Louis Board of Aldermen during 1971 as the incumbent Democratic candidate. After apparently winning the Democratic primary by a narrow margin, petitioner was forced to defend his victory against an election contest suit filed by his opponent. Legal fees of $ 8,000 were paid to counsel preparing his defense. Petitioner subsequently deducted this sum from his 1971 adjusted gross income as a miscellaneous itemized deduction. Held, petitioner is not entitled to deduct these expenses either under secs. 162 and 212, I.R.C. 1954, or under sec. 183.
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined a deficiency of $3,017.30 in petitioners’ Federal income tax for the year 1971. The only issue presented for our decision is whether legal expenses incurred by petitioner Joseph W. Martino while defending against an election contest suit qualify for deduction either as ordinary and necessary business expenses under section 162 or for the production of income under section 212,1.R.C 1954,1 or pursuant to the provisions of section 183 as expenses incurred in activities not engaged in for profit.
All of the facts have been stipulated by the parties. We…
2Cases cited19 opinions
- Terry v. AdamsSupreme Court of the United States · 1953
- United States v. GilmoreSupreme Court of the United States · 1963
- Commissioner v. TellierSupreme Court of the United States · 1966
- Primuth v. CommissionerUnited States Tax Court · 1970
- McDonald v. CommissionerSupreme Court of the United States · 1944
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3Cited by9 opinions
- Estate of Rockefeller v. CommissionerUnited States Tax Court · 1984
- Estate of Rockefeller v. CommissionerCourt of Appeals for the Second Circuit · 1985
- Diggs v. CommissionerUnited States Tax Court · 1981
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- Diggs v. CommissionerUnited States Tax Court · 1981
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