Safety Tube Corp. v. Commissioner
United States Tax Court
1. Petitioner was incorporated under the laws of the State of Tennessee, to receive title to a patent and other property then involved in litigation in the state courts, under an agreement that it would intervene in the suit as a defendant and defend the suit which was then pending against the parties who transferred the property to petitioner.
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1. Petitioner was incorporated under the laws of the State of Tennessee, to receive title to a patent and other property then involved in litigation in the state courts, under an agreement that it would intervene in the suit as a defendant and defend the suit which was then pending against the parties who transferred the property to petitioner. Petitioner did intervene and did defend against the pending litigation and in the taxable year expended certain sums as legal expenses incurred in the litigation. Held, the expenditures were capital in nature and are not deductible as ordinary and…
1Opinion of the Court
OPINION.
Black, Judge:
The Commissioner has determined deficiencies against petitioner for the year 1940 of $1,138.23 in income tax and $9,221.34 in personal holding company surtax, plus a 25 per cent penalty amounting to $2,305.34 for failure to file a personal holding company return on Form 1120H. The deficiencies are based upon two adjustments which the Commissioner made on the income tax return filed by petitioner and on the determination by the Commissioner that petitioner was a personal holding company. Adjustment (b) is in petitioner’s favor and allows it a deduction of $1,176.47 for…
2Cases cited7 opinions
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Murphy Oil Co. v. BurnetSupreme Court of the United States · 1932
- Murphy Oil Co. v. BurnetCourt of Appeals for the Ninth Circuit · 1932
- Coughlin v. CommissionerUnited States Tax Court · 1944
2 more not listed; retrieve them via the Exa API.
3Cited by64 opinions
- Paula Constr. Co. v. CommissionerUnited States Tax Court · 1972
- Duttenhofer v. CommissionerUnited States Tax Court · 1967
- Kasey v. CommissionerUnited States Tax Court · 1970
- Sanders v. CommissionerUnited States Tax Court · 1954
- In Re Fisk's Estate. Fisk v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1953
59 more not listed; retrieve them via the Exa API.