Smith v. Commissioner
United States Tax Court
Held: 1. Amounts expended to acquire "upland cotton acreage allotments" were capital expenditures and not deductible as ordinary and necessary business expenses. Secs. 263 and 162, I.R.C. 1954. 2. A legal fee paid in connection with the partition of inherited lands was also a nondeductible capital expenditure under sec. 263, I.R.C. 1954.
1Opinion of the Court
TietjeNS,' Judge:
The Commissioner determined deficiencies in petitioners’ Federal income tax for the fiscal years ended April 80, 1966 and 1967, in the amounts of $5,187.14 and $12,338.85, respectively. Due to concessions by petitioners only two issues remain for our decision! The first is whether the cost of acquiring certain upland cotton acreage allotments in each of the years in question is an ordinary and necessary business expense under section 162,1.R..C. 1954, or is a nondeductible capital expenditure under section 263, I.K..C. 1954.1 The second issue is whether a $1,000 legal fee…
2Cases cited5 opinions
- United States v. Victor H. And Elsie Akin, Fred C. And Alice M. Kluver, E.F. And Gladys MunroeCourt of Appeals for the Tenth Circuit · 1957
- Nachman v. Commissioner of Internal Revenue. Tobias v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- Nachman v. CommissionerUnited States Tax Court · 1949
- Livingood v. CommissionerUnited States Board of Tax Appeals · 1932
- Brown v. United StatesDistrict Court, D. New Mexico · 1967
3Cited by11 opinions
- Webb v. CommissionerUnited States Tax Court · 1971
- W. K. Co. v. CommissionerUnited States Tax Court · 1971
- Fiore v. CommissionerUnited States Tax Court · 1979
- Jacobson v. CommissionerUnited States Tax Court · 1983
- Condit v. CommissionerUnited States Tax Court · 1980
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