Reed v. Commissioner
United States Tax Court
The petitioners incurred attorneys' fees and related expenses in pursuance of two causes of action. In the first they sought to have a constructive trust, preliminary to a reconveyance, imposed on a certain partnership interest. In the second cause of action they sought rescission of a partnership agreement which imposed certain restrictions on the free transfer of a partnership interest belonging to the petitioner wife.
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The petitioners incurred attorneys' fees and related expenses in pursuance of two causes of action. In the first they sought to have a constructive trust, preliminary to a reconveyance, imposed on a certain partnership interest. In the second cause of action they sought rescission of a partnership agreement which imposed certain restrictions on the free transfer of a partnership interest belonging to the petitioner wife. Held, petitioners are not entitled to deduct their legal fees under either sec. 162(a) or sec. 212, I.R.C. 1954. The expenditures were incurred in acquiring or in defending…
1Opinion of the Court
SteRrett, Judge:
The respondent determined deficiencies in the petitioners’ Federal income tax for the taxable years 1961,1962,1963, and 1965 in the amounts of $11,455.53, $7,223.44, $115.85, and $1,312.36, respectively.1 Due to certain concessions by the petitioners, the sole issue for our decision concerns whether the respondent erred in disallowing deductions of legal fees and related expenses under sections 162 and 212 of the Internal Revenue Code of 1954.2
FINDINGS OF FACT
Some of the facts were stipulated. The stipulations and the exhibits attached thereto are incorporated herein by this…
2Cases cited23 opinions
- United States v. GilmoreSupreme Court of the United States · 1963
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Woodward v. CommissionerSupreme Court of the United States · 1970
- Moore v. Mead's Fine Bread Co.Supreme Court of the United States · 1955
- Harrison E. Spangler and Myrtle B. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
18 more not listed; retrieve them via the Exa API.
3Cited by64 opinions
- Luman v. CommissionerUnited States Tax Court · 1982
- Professional Services v. CommissionerUnited States Tax Court · 1982
- Boagni v. CommissionerUnited States Tax Court · 1973
- Epp v. CommissionerUnited States Tax Court · 1982
- Hope v. CommissionerUnited States Tax Court · 1971
59 more not listed; retrieve them via the Exa API.