Capitol Indem. Ins. Co. v. Commissioner
United States Tax Court
In part consideration for the cancellation of an exclusive agency agreement, petitioner assumed the liability of its agent to repay to the stockholders of petitioner the amount of the issued price of their stock. Held, no part of the payments by petitioner pursuant to the obligation thus assumed by it can qualify as an ordinary and necessary business expense within section 23 (a) (1) of the Internal Revenue Code of 1939.
1Opinion of the Court
OPINION.
Raum, Judge:
Respondent has determined a deficiency in the income tax of petitioner for the calendar year 1949 in the amount of $5,104.24. A number of issues have been conceded, and the sole question left for our determination is whether a payment of $5,9.66.26 made by the petitioner in 1949 is deductible as an ordinary and necessary business expense, pursuant to section 23 (a) of the Internal Revenue Code of 1939.
All of the facts have been stipulated, and the stipulation filed by the parties is incorporated herein by this reference.
Petitioner, an Indiana corporation, was organized on…
2Cases cited9 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Interstate Transit Lines v. CommissionerSupreme Court of the United States · 1943
- Nelson v. CommissionerUnited States Tax Court · 1952
- Alexander Sprunt & Son v. Commissioner of Int. Rev.Court of Appeals for the Fourth Circuit · 1933
4 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Harder Services, Inc. v. CommissionerUnited States Tax Court · 1976
- Ingalls v. PattersonDistrict Court, N.D. Alabama · 1958
- T.J. ENTERPRISES v. COMMISSIONER OF INTERNAL REVENUEUnited States Tax Court · 1993
- Capitol Indem. Ins. Co. v. CommissionerUnited States Tax Court · 1955
- Harder Services, Inc. v. CommissionerUnited States Tax Court · 1976
1 more not listed; retrieve them via the Exa API.