Yamhill Elec. Co. v. Commissioner
United States Board of Tax Appeals
Contribution made to the endowment fund of a local college, to assure its continuation as a substantial patron of petitioner, allowed as an ordinary and necessary business expense.
1Opinion of the Court
*1233OPINION.
ARUndell:
Whether an item such as the one here is deductible as an ordinary and necessary expense of carrying on a trade or business depends largely upon the facts of each individual case. The facts here are not in controversy.
The governing rule has been expressed in various ways. In Poinsett Mills, 1 B. T. A. 6, we said that the donation must represent “ a consideration for a benefit flowing directly to the corporation as an incident to its business.” In Thomas Shoe Co., 1 B. T. A. 124, it was said that the contributions, to be deductible as a business expense, “ must have in a direct…
2Cited by5 opinions
- Fairmont Creamery Corporation v. HelveringCourt of Appeals for the D.C. Circuit · 1937
- Capital Traction Co. v. CommissionerUnited States Board of Tax Appeals · 1933
- First Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1937
- Old Mission Portland Cement Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Yamhill Elec. Co. v. CommissionerUnited States Board of Tax Appeals · 1930