Grace National Bank of New York v. Commissioner

OPINION.

Harron, Judge:

The only question presented is whether a payment of $5,000 which the petitioner made for admission to the New York Clearing House Association was an ordinary and necessary business expense incurred during the taxable year, as the petitioner contends, ■or whether the payment was a capital expenditure, as the respondent alleges. If the payment was an ordinary and necessary business expense, it is properly deductible from gross income by the petitioner under section 23 (a). However, if it was a capital expenditure, it is not properly deductible from gross income as m…