Kelly v. Commissioner
United States Tax Court
1. Petitioner brought suit against his sister in 1947 to perfect title to an undivided one-half interest in certain rental properties and to recover money advanced to pay the mortgage indebtedness on the properties. In connection with this suit petitioner incurred expenditures in 1947 for legal fees and expenses.
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1. Petitioner brought suit against his sister in 1947 to perfect title to an undivided one-half interest in certain rental properties and to recover money advanced to pay the mortgage indebtedness on the properties. In connection with this suit petitioner incurred expenditures in 1947 for legal fees and expenses. Held, those portions of the expenditures attributable to the perfection of title to the properties and the recovery of loan principal are capital expenditures and are not deductible under section 23 (a) (2), Internal Revenue Code of 1939. Held, further, that expenditures allocable to…
1Opinion of the Court
OPINION.
Biiuce, Judge:
The principal question to be determined herein is whether attorneys’ fees, travel, and out-of-pocket expenses, incurred in connection with a suit instituted by the petitioner to recover a one-half interest in certain real estate, legal title to which was in his sister, and to recover money advanced to his father or paid subsequent to his death on mortgage indebtedness, together with accumulated rentals and interest,2 are deductible as ordinary and necessary expenses paid during the taxable year “for the production or collection of income, or for the management,…
2Cases cited21 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Bowers v. LumpkinCourt of Appeals for the Fourth Circuit · 1944
- Safety Tube Corp. v. Commissioner of Internal Rev.Court of Appeals for the Sixth Circuit · 1948
16 more not listed; retrieve them via the Exa API.
3Cited by47 opinions
- Boagni v. CommissionerUnited States Tax Court · 1973
- Daniel S. W. Kelly v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1956
- Spector v. CommissionerUnited States Tax Court · 1979
- Hendrick v. CommissionerUnited States Tax Court · 1961
- Estate of Joseph P. Morgan, Deceased and Margaret Koehler Morgan, Surviving Spouse v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1964
42 more not listed; retrieve them via the Exa API.