Cornman v. Commissioner
United States Tax Court
Petitioner, a United States taxpayer residing in a foreign country, earned no income from biological research activities in 1970. He did, however, deduct expenses related to these activities on his joint Federal income tax return for 1970. Respondent disallowed such expenses on the ground that they were allocable to income which would be exempt from taxation under sec. 911(a), I.R.C. 1954, if earned.
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Petitioner, a United States taxpayer residing in a foreign country, earned no income from biological research activities in 1970. He did, however, deduct expenses related to these activities on his joint Federal income tax return for 1970. Respondent disallowed such expenses on the ground that they were allocable to income which would be exempt from taxation under sec. 911(a), I.R.C. 1954, if earned. Held, petitioner is entitled to deduct the biological research expenses under sec. 162(a), where he received no "earned income" within the intended scope of sec. 911(a) to which his expenses…
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined a deficiency of $1,545.07 in petitioner’s Federal income tax for the year 1970. The only issue presented for decision is whether section 911(a)1 prevents petitioner from deducting ordinary and necessary expenses incurred in 1970 in connection with his trade or business of biological research, where he earned no income from such activities while residing in a foreign country.2
All of the facts are stipulated. We adopt the stipulation* of facts as our findings. The relevant facts are summarized below.
The principal place of residence in 1970 of Ivor…
2Cases cited14 opinions
- Helvering v. R. J. Reynolds Tobacco Co.Supreme Court of the United States · 1939
- McDonald v. CommissionerSupreme Court of the United States · 1944
- Harrow-Taylor Butter Co. v. CrooksCourt of Appeals for the Eighth Circuit · 1930
- Hartung v. CommissionerUnited States Tax Court · 1970
- Anne Moen Bullitt Brewster v. Commissioner of Internal RevenueCourt of Appeals for the D.C. Circuit · 1973
9 more not listed; retrieve them via the Exa API.
3Cited by8 opinions
- Christensen v. CommissionerUnited States Tax Court · 1978
- Brewster v. CommissionerUnited States Tax Court · 1976
- Christensen v. CommissionerUnited States Tax Court · 1978
- Cornman v. CommissionerUnited States Tax Court · 1975
- Hernandez v. CommissionerUnited States Tax Court · 1979
3 more not listed; retrieve them via the Exa API.