Reakirt v. Commissioner
United States Board of Tax Appeals
Attorney fees paid by a taxpayer engaged in the real estate and investment business in resisting an illegal attempt by a city to condemn and acquire certain of his property are diductible as ordinary and necessary expenses of such business.
1Opinion of the Court
OPINION.
Van Fossan:
In this proceeding petitioner contests a deficiency of $1,875 for the year 1930. The deficiency arose upon respondent’s disallowance of a deduction claimed by petitioner on account of a fee of $7,500 paid to lawyers for services rendered in preventing an illegal taking of property by condemnation. Petitioner maintains the payment was either a proper business expense or a loss.
The facts were largely stipulated.
The petitioner is an individual residing in Cincinnati, Ohio, and is engaged in the business of real estate and investments for his own account.
In March 1928 the city…
2Cases cited5 opinions
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Backer v. CommissionerUnited States Board of Tax Appeals · 1924
- E. L. Bruce Co. v. CommissionerUnited States Board of Tax Appeals · 1930
- Hill v. CommissionerUnited States Board of Tax Appeals · 1927
- Leidesdorf v. CommissionerUnited States Board of Tax Appeals · 1932
3Cited by19 opinions
- Dustin v. CommissionerUnited States Tax Court · 1969
- Anchor Coupling Company, Inc. v. United StatesCourt of Appeals for the Seventh Circuit · 1970
- Industrial Aggregate Company, a Corporation v. United StatesCourt of Appeals for the Eighth Circuit · 1960
- Isaac G. Johnson & Co. v. United StatesCourt of Appeals for the Second Circuit · 1945
- Hermann F. And Madeleine Dupont Ruoff v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1960
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