Tube Bar, Inc. v. Commissioner
United States Tax Court
Petitioner, in order to obtain a liquor license for transfer to it by the Board of Commissioners of the City of Jersey City for use in another location, was compelled to purchase the premises for which the license was issued, and chattels therein. Thereafter, while the application for transfer was pending before the Board of Commissioners, petitioner sold the premises and chattels for $ 2,900 less than the cost basis of all of the property, including the license.
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Petitioner, in order to obtain a liquor license for transfer to it by the Board of Commissioners of the City of Jersey City for use in another location, was compelled to purchase the premises for which the license was issued, and chattels therein. Thereafter, while the application for transfer was pending before the Board of Commissioners, petitioner sold the premises and chattels for $ 2,900 less than the cost basis of all of the property, including the license. Held, that that amount, also attorneys' fees paid for services rendered in connection with the issuance of a license by transfer,…
1Opinion of the Court
OPINION.
Disney, Judge:
The petitioner is contending that it is entitled to a deduction for an ordinary loss of $2,900 alleged to have been sustained in the sale of the Franklin Street property and fixtures, and a total of $13,500 as a deduction for legal expenses. The amount of the alleged loss is the difference of $1,950 between the consideration paid to Schubert and the selling price of the property, without the license, plus the selling commission of $300, and $650 for the fee paid to Hershen-stein for legal services rendered incident to the purchase and sale. The $650 was added to the loss…
2Cases cited1 opinion
- Nachman v. CommissionerUnited States Tax Court · 1949
3Cited by25 opinions
- Dustin v. CommissionerUnited States Tax Court · 1969
- Westinghouse Broadcasting Co. v. CommissionerUnited States Tax Court · 1961
- Radio Station WBIR, Inc. v. CommissionerUnited States Tax Court · 1959
- Western Wine & Liquor Co. v. CommissionerUnited States Tax Court · 1952
- Commissioner of Internal Revenue v. Indiana Broadcasting CorporationCourt of Appeals for the Seventh Circuit · 1965
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