Braznell v. Commissioner
United States Tax Court
In 1945, petitioner paid a final judgment entered in a Florida State Court which assessed damages of $ 16,500 against him for breach of his obligation to pay a real estate sales commission to a registered Florida brokerage firm for services rendered by said firm pursuant to certain sales negotiations petitioner had with this firm in early 1944. Sale of the same properties was actually consummated through a different broker and to different parties in December 1944.…
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In 1945, petitioner paid a final judgment entered in a Florida State Court which assessed damages of $ 16,500 against him for breach of his obligation to pay a real estate sales commission to a registered Florida brokerage firm for services rendered by said firm pursuant to certain sales negotiations petitioner had with this firm in early 1944. Sale of the same properties was actually consummated through a different broker and to different parties in December 1944. Petitioner's co-owners contributed $ 11,000 as their share of the judgment expenditure. Held, that $ 5,500 representing…
1Opinion of the Court
OPINION.
Turner, Judge:
It is the claim of the petitioner that the $5,500 paid by him to Davis in satisfaction of the above-described judgment constituted a proper deduction from gross income, under section 23 (a)- (2) of the Internal Eevenue Code, as an ordinary and necessary expense paid in the preservation of property held for the production of income. It is the claim of the respondent that the expenditure here was essentially a sales commission, that a sales commission is capital in character and, for the purpose of arriving at the gain realized upon the sale of the property to which it is…
2Cases cited6 opinions
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Helvering v. WinmillSupreme Court of the United States · 1938
- Spreckels v. CommissionerSupreme Court of the United States · 1942
- Harman v. CommissionerUnited States Tax Court · 1944
1 more not listed; retrieve them via the Exa API.
3Cited by15 opinions
- Estate of Shannonhouse v. CommissionerUnited States Tax Court · 1953
- Naylor v. CommissionerUnited States Tax Court · 1951
- Picker v. United StatesUnited States Court of Claims · 1967
- Swaim v. CommissionerUnited States Tax Court · 1953
- Shannonhouse v. CommissionerUnited States Tax Court · 1953
10 more not listed; retrieve them via the Exa API.