Paxman v. Commissioner
United States Tax Court
Over a period beginning in August of 1960 and ending in October of 1962 petitioners expended various sums for labor and materials in building the unfinished attic in their home into a family recreation room. In 1963 they were awarded a prize of $ 10,867 in cash and merchandise in respect of the recreation room in the Better Homes and Gardens magazine's "Home Improvement Contest" announced in the January 1962 issue of the magazine.
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Over a period beginning in August of 1960 and ending in October of 1962 petitioners expended various sums for labor and materials in building the unfinished attic in their home into a family recreation room. In 1963 they were awarded a prize of $ 10,867 in cash and merchandise in respect of the recreation room in the Better Homes and Gardens magazine's "Home Improvement Contest" announced in the January 1962 issue of the magazine. They reported the $ 10,867 of prize money and merchandise as income in their 1963 return and deducted $ 9,816.33 claimed as the cost of producing the room. The…
1Opinion of the Court
OPINION
TURNER, Judge:
The only issue raised by the pleadings is the de-ductibility of expenditures in the claimed amount of $9,816.38 for materials and labor in the construction by the petitioners of the unfinished attic of their home into a family recreation room. The petitioners concede that by reason of their entry into the “Plome Improvement Contest” in pursuit of a prize, the $10,867 of prize money and merchandise received by them was gross income. See in that connection section 74 of the Internal Eevenue Code of 1954.5
It is well settled that in computing taxable income, deductions are a…
2Cases cited6 opinions
- Brushaber v. Union Pacific RailroadSupreme Court of the United States · 1916
- Iselin v. United StatesSupreme Court of the United States · 1926
- United States v. WeitzelSupreme Court of the United States · 1918
- Peoria & Pekin Union Railway Co. v. United StatesSupreme Court of the United States · 1924
- Hays Corp. v. CommissionerUnited States Tax Court · 1963
1 more not listed; retrieve them via the Exa API.
3Cited by13 opinions
- Pollock v. Comm'rUnited States Tax Court · 2009
- Farmer v. CommissionerUnited States Tax Court · 1994
- Arlene L. Pollock v. CommissionerUnited States Tax Court · 2009
- Bauer v. CommissionerUnited States Tax Court · 1973
- Coppin v. Comm'rUnited States Tax Court · 2009
8 more not listed; retrieve them via the Exa API.