Silberman v. Commissioner
United States Board of Tax Appeals
Petitioner received income in taxable year from legal sources. In addition to whatever services he performed for such compensation he carried on a business of making and registering bets at licensed race tracks from which he realized no gain. It was illegal in New York to receive and register bets or to assist therein or to allow a person doing the same to occupy a booth at a race track for that purpose.
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Petitioner received income in taxable year from legal sources. In addition to whatever services he performed for such compensation he carried on a business of making and registering bets at licensed race tracks from which he realized no gain. It was illegal in New York to receive and register bets or to assist therein or to allow a person doing the same to occupy a booth at a race track for that purpose. Petitioner paid fees for use of booths and salaries to assistants which he seeks to deduct from income from legal sources as business expense. Held, such expenditures for illegal purposes are…
1Opinion of the Court
*601OPINION.
HaeRon :
Petitioner was engaged in the occupation of making, registering, and recording bets on horse races at duly licensed race tracks in New York State. He rented booths at various tracks, for the use of which he paid fees. He employed persons to register bets and assist him in these booths and in his activities and paid them salaries for *602their services. At these booths he kept books and records for the purpose of recording bets and he received bets and paid bets. The aggregate amounts paid in the taxable year for fees for booths and salaries for assistants was $12,683.50.…
2Cases cited4 opinions
- United States v. SullivanSupreme Court of the United States · 1927
- United States v. YuginovichSupreme Court of the United States · 1921
- Beach v. Queens County Jockey ClubNew York Supreme Court · 1937
- Chapin v. AustinNew York Supreme Court · 1937
3Cited by2 opinions
- Rugel v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1942
- Silberman v. CommissionerUnited States Board of Tax Appeals · 1941