Diamond v. Commissioner
United States Tax Court
1. In 1961 petitioner, as a mortgage broker, received $ 145,186.37 in commissions or fees from borrowers for obtaining loans on their behalf from Marshall Savings & Loan, which was controlled by the Moravec family. During the same year petitioner made secret payments totaling $ 39,398.50 to the Moravecs. Held, the commissions are fully includable in petitioner's 1961 gross income.
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1. In 1961 petitioner, as a mortgage broker, received $ 145,186.37 in commissions or fees from borrowers for obtaining loans on their behalf from Marshall Savings & Loan, which was controlled by the Moravec family. During the same year petitioner made secret payments totaling $ 39,398.50 to the Moravecs. Held, the commissions are fully includable in petitioner's 1961 gross income. Sec. 61, I.R.C. 1954. Held, further, petitioner's payments to the Moravecs are not deductible as ordinary and necessary business expenses. Sec. 162, I.R.C. 1954. 2. Petitioner performed services for Kargman in…
1Opinion of the Court
OPINION
Raum, Judge:
1. Payments to the Moravecs. — In 1961 petitioner Sol Diamond, as a mortgage broker, received an aggregate of $145,-186.37 in commissions or fees from various borrowers for obtaining some 24 loans on their behalf from Marshall Savings & Loan Association, which was controlled by members of the Moravec family. He reported that amount as income and claimed various deductions as expenses incurred in the conduct of his mortgage brokerage business. Among those deductions was an item of $39,398.50 described as “Consultants fees.” That item represents the sum of payments made by…
2Cases cited37 opinions
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Commissioner v. TellierSupreme Court of the United States · 1966
- Hort v. CommissionerSupreme Court of the United States · 1941
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3Cited by58 opinions
- Sol Diamond and Muriel Diamond v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1974
- Goodwin v. CommissionerUnited States Tax Court · 1979
- Larson v. CommissionerUnited States Tax Court · 1976
- George Gordon Liddy, and Frances Purcell Liddy v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1986
- Ancira v. Comm'rUnited States Tax Court · 2002
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