Stuart Co. v. Commissioner
United States Tax Court
On the facts, held, that $75,000 paid by the petitioner to secure the cancellation of an onerous contract is properly deductible during the fiscal year 1943 as an ordinary and necessary business expense, and that $122,700 which the petitioner was obligated to pay for the purchase of a trade mark is a capital expenditure which is not deductible as an ordinary and necessary business expense.
1Opinion of the Court
The Stuart Company v. Commissioner.
Stuart Co. v. Commissioner
Docket No. 12473.
United States Tax Court
1950 Tax Ct. Memo LEXIS 160; 9 T.C.M. (CCH) 585; T.C.M. (RIA) 50171;
June 30, 1950
On the facts, held, that $75,000 paid by the petitioner to secure the cancellation of an onerous contract is properly deductible during the fiscal year 1943 as an ordinary and necessary business expense, and that $122,700 which the petitioner was obligated to pay for the purchase of a trade mark is a capital expenditure which is not deductible as an ordinary and necessary business expense.
A. Calder Mackay, Esq.,…
2Cases cited4 opinions
- Rainier Brewing Co. v. CommissionerUnited States Tax Court · 1946
- Seattle Brewing & Malting Co. v. Comm'rUnited States Tax Court · 1946
- Coca-Cola Bottling Co. v. CommissionerUnited States Board of Tax Appeals · 1927
- Cassatt v. CommissionerUnited States Board of Tax Appeals · 1942
3Cited by1 opinion
- Great Lakes Pipe Line Company v. United StatesDistrict Court, W.D. Missouri · 1972