Cummings v. Commissioner
United States Tax Court
P was a director and shareholder of MGM, and in 1962 he made a payment to MGM of $ 53,870.81 when the SEC indicated that P might be liable to MGM for such amount as an insider's profit within the meaning of sec. 16(b) of the Securities Exchange Act of 1934. Held, under the particular circumstances of this case, the payment is an ordinary and necessary business expense of P.
1Opinion of the Court
Simpson, Judge:
The respondent determined a deficiency of $45,790.18 in the petitioners’ Federal income tax for 1962. The only issue for decision is whether the petitioner may deduct as a business expense under section 162(a) of the Internal Revenue Code of 1954,1 or as a business loss under section 165(a), a payment of $53,870.81 which he made to MGM in 1962 when the Securities and Exchange Commission indicated that he might be liable to MGM for such amount as an insider’s profit within the meaning of section 16 (b) of the Securities Exchange Act of 1934.
FINDINGS OP PACT
Some of the facts were…
2Cases cited11 opinions
- Arrowsmith v. CommissionerSupreme Court of the United States · 1952
- Great Island Holding Corp. v. CommissionerUnited States Tax Court · 1945
- Marks v. CommissionerUnited States Tax Court · 1956
- William L. Mitchell and Marian S. Mitchell v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1970
- Butler v. CommissionerUnited States Tax Court · 1951
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3Cited by12 opinions
- Gould v. CommissionerUnited States Tax Court · 1975
- James E. Anderson and Alice Anderson v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1973
- Nathan and Joanne T. Cummings v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1975
- Cummings v. CommissionerUnited States Tax Court · 1973
- George T. And Ruth A. Kimbell v. United States of America, No. 73-3411 Summary Calendar. Rule 18, 5th Cir. See Isbell Enterprises, Inc. v. Citizens Casualty Co. Of New York, 5th Cir. 1970, 431 F.2d 409, Part ICourt of Appeals for the Fifth Circuit · 1974
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