Hippodrome Oldsmobile, Inc. v. United States

EDWARDS, Circuit Judge.

This case presents the question as to whether under a 1962 amendment to the Internal Revenue Code a corporate taxpayer may deduct as ordinary and necessary business expenses the depreciation and expenses of a pleasure boat, when concededly the company customers entertained thereon were not subjected to any specific exposure to taxpayer’s products or suggestion that they buy them while being thus entertained.

The District Judge who heard the taxpayer’s suit for refund of taxes paid under protest found these facts:(1) A number of automobile agencies in Nashville owned…