Clarence Whitman & Sons, Inc. v. Commissioner
United States Board of Tax Appeals
1. Legal and accounting fees paid in connection with organizing a corporation held not to be deductible as ordinary and necessary expenses in computing income of the year when paid. 2. Taxes paid in connection with the organization of a corporation and the issue of its capital stock held to be deductible in computing net income for the year when such payment was made. 3. Under section 331 of the Revenue Acts of 1918 and 1921, assets acquired by a corporation from an…
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1. Legal and accounting fees paid in connection with organizing a corporation held not to be deductible as ordinary and necessary expenses in computing income of the year when paid. 2. Taxes paid in connection with the organization of a corporation and the issue of its capital stock held to be deductible in computing net income for the year when such payment was made. 3. Under section 331 of the Revenue Acts of 1918 and 1921, assets acquired by a corporation from an individual who retains ownership of more than 50 per centum of its stock may not be included in its invested capital at more…
1Opinion of the Court
*1194OPINION.
Phillips:
It is alleged that the respondent erred (1) in refusing to allow, as a deduction from income, amounts expended in the organization of petitioner, (2) in refusing to include in invested capital the | value of intangibles acquired for stock and, in the alternative,(3) in determining that no abnormality existed in the capital or income of petitioner.(1) The Commissioner refused to allow as a deduction any part of the payments made by petitioner for legal and accounting services in connection with its organization. We have heretofore had occasion to consider this question and…
2Cases cited2 opinions
- United States v. WoodwardSupreme Court of the United States · 1921
- Keith v. JohnsonSupreme Court of the United States · 1926
3Cited by4 opinions
- Clarence Whitman & Sons, Inc. v. CommissionerUnited States Board of Tax Appeals · 1928
- Concrete Eng'g Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- Continental Products Co. v. CommissionerUnited States Board of Tax Appeals · 1931
- Udolpho Wolfe Co. v. CommissionerUnited States Board of Tax Appeals · 1929