Capital Traction Co. v. Commissioner
United States Board of Tax Appeals
1. Contribution made by corporation to Community Chest is not deductible from gross income, in the absence of express statutory provision for allowance as such, unless it is an ordinary and necessary expense of carrying on the business of the donor. 2. Facts concerning the corporation, its business and affairs, sufficient to supply the knowledge thereof necessary to adjudge whether such a contribution is so related and connected to the business within its ordinary scope as…
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1. Contribution made by corporation to Community Chest is not deductible from gross income, in the absence of express statutory provision for allowance as such, unless it is an ordinary and necessary expense of carrying on the business of the donor. 2. Facts concerning the corporation, its business and affairs, sufficient to supply the knowledge thereof necessary to adjudge whether such a contribution is so related and connected to the business within its ordinary scope as to constitute such an expense, must be produced.
1Opinion of the Court
*927OPINION.
Goodkich:
The Revenue Act of 1928 contains no provision specifically allowing as a deduction in computing net income amounts *928contributed by corporations to charitable, educational and related social welfare agencies. Such corporate contributions, to be deductible from gross income, must fall within the provisions of section 23 (a), 1928 Act, and article 262 of Regulations 74, as “ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” They must be an expense directly connected with or proximately resulting from the business; must…
2Cases cited1 opinion
- Niles Bement Pond Co. v. United StatesSupreme Court of the United States · 1930
3Cited by4 opinions
- W. M. Ritter Lumber Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- Cook v. CommissionerUnited States Board of Tax Appeals · 1934
- Capital Traction Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- W. M. Ritter Lumber Co. v. CommissionerUnited States Board of Tax Appeals · 1934