Doering v. Commissioner
United States Tax Court
X corporation possessed an ex contractu claim against Y corporation. Prior to resolution of the contract dispute, X corporation was liquidated, and its assets, including the claim against Y corporation, were distributed to its shareholders. The claim had no ascertainable fair market value on the date of its distribution. The petitioner and the other X corporation shareholders engaged an attorney to prosecute their claim against Y corporation.
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X corporation possessed an ex contractu claim against Y corporation. Prior to resolution of the contract dispute, X corporation was liquidated, and its assets, including the claim against Y corporation, were distributed to its shareholders. The claim had no ascertainable fair market value on the date of its distribution. The petitioner and the other X corporation shareholders engaged an attorney to prosecute their claim against Y corporation. The attorney negotiated a settlement whereby Y corporation agreed to pay the X corporation shareholders the aggregate sum of $ 540,000 in exchange for a…
1Opinion of the Court
OPINION.
Fay, Judge:
The respondent determined a deficiency in income tax of $2,338.88 for the calendar year 1956. The only issue for decision is whether payments in 1956 for legal and bank services furnished in connection with the settlement of a contract claim were capital in nature or deductible expenses incurred in the production or collection of income.
All of the facts have been stipulated and are found accordingly.
Petitioners are husband and wife and reside in Scarsdale, N.Y. They filed their income tax return for 1956 with the district director of internal revenue at New York, N.Y.
Petitio…
2Cases cited14 opinions
- Lykes v. United StatesSupreme Court of the United States · 1952
- Commissioner of Internal Revenue v. CarterCourt of Appeals for the Second Circuit · 1948
- Dwight A. Ward v. Commissioner of Internal Revenue, Hanna P. Ward v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1955
- Ward v. CommissionerUnited States Tax Court · 1953
- Carter v. CommissionerUnited States Tax Court · 1947
9 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Harrison E. Spangler and Myrtle B. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
- Commissioner of Internal Revenue v. Otto C. Doering, Jr., and Lucy T. DoeringCourt of Appeals for the Second Circuit · 1964
- Baier v. Comm'rUnited States Tax Court · 1975
- Estate of Meade v. CommissionerCourt of Appeals for the Fifth Circuit · 1974
- Wagner v. CommissionerUnited States Tax Court · 1982
22 more not listed; retrieve them via the Exa API.