Mosser v. Commissioner
United States Board of Tax Appeals
A payment made to procure the withdrawal of a partner, whose activities were damaging the partnership business, which payment directly benefited the business, is deductible from gross income A. King Aitkin,12 B.T.A. 692, followed.
1Opinion of the Court
*514OPINION.
Smith:
The petitioner claims that the expenditure of $15,000 is deductible either as a loss or as an ordinary and necessary expense of carrying on business. Obviously, the amount is not deductible as a loss, blit the record shows that the payment to Bogert had a direct relation to and was made to preserve the copartnership business; it was not made in payment for Bogert’s interest in the copartnership. Bogert demanded the payment of $15,000 in addition to his capital investment before he would consent to the dissolution of the copart-nership. The petitioner testified as to the…
2Cases cited1 opinion
- Kornhauser v. United StatesSupreme Court of the United States · 1928
3Cited by4 opinions
- John M. Briley and Dorothy D. Briley v. United StatesCourt of Appeals for the Sixth Circuit · 1962
- Kenworthy v. CommissionerUnited States Tax Court · 1952
- Boulevard Frocks, Inc. v. CommissionerUnited States Tax Court · 1943
- Mosser v. CommissionerUnited States Board of Tax Appeals · 1933