Coughlin v. Commissioner
United States Tax Court
In 1941 the petitioner paid $ 4,000 in legal fees in connection with a proceeding for the perpetuation of testimony, brought by a brother seeking to establish some interest in the business properties of the petitioner, on behalf of the estate of their deceased mother.
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In 1941 the petitioner paid $ 4,000 in legal fees in connection with a proceeding for the perpetuation of testimony, brought by a brother seeking to establish some interest in the business properties of the petitioner, on behalf of the estate of their deceased mother. Held, the proceeding was fundamentally an attack on the petitioner's title, and costs incurred therein are capital expenditures, not deductible expenses within the meaning of section 23 (a) of the Internal Revenue Code, as amended by section 121 of the Revenue Act of 1942.
1Opinion of the Court
OPINION.
Akundeií. Judge:
The petitioner contends that the legal fee here involved was an ordinary and necessary expense paid for the conservation of property held for the production of income, within the meaning of section 2b (a) of the Internal Revenue Code, as amended by section 121 of the Revenue Act of 1912.1
The precise nature of the suit with which the petitioner was threatened is elusive because of the generality of the petition for the perpetuation of testimony. The petitioner has testified that he did not know the reason for the proceedings, but thought that the brother was on a…
2Cited by46 opinions
- Safety Tube Corp. v. CommissionerUnited States Tax Court · 1947
- Hendrick v. CommissionerUnited States Tax Court · 1961
- Manufacturers Hanover Trust Company, as Trustee Under Indenture Dated November 15, 1927, Made by Henry H. Rogers, Deceased v. The United StatesUnited States Court of Claims · 1963
- Coke v. CommissionerUnited States Tax Court · 1951
- Hochschild v. CommissionerUnited States Tax Court · 1946
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