Farnsworth v. Commissioner
United States Tax Court
1. Payments by petitioner of State unincorporated business taxes, personal income taxes, and interest thereon, allocable to his former partners, and for which he was not ultimately liable, held, not deductible by him as taxes paid, as ordinary and necessary business expense, or as losses in a transaction entered into for profit. 2. Payments by petitioner for legal services in connection with the foregoing, coupled with claims against himself and penalties thereon, held, on…
Read the full summary
1. Payments by petitioner of State unincorporated business taxes, personal income taxes, and interest thereon, allocable to his former partners, and for which he was not ultimately liable, held, not deductible by him as taxes paid, as ordinary and necessary business expense, or as losses in a transaction entered into for profit. 2. Payments by petitioner for legal services in connection with the foregoing, coupled with claims against himself and penalties thereon, held, on the facts, deductible in full.
1Opinion of the Court
OPINION.
Opper, Judge:
The parties are in accord on a number of subordinate questions. Respondent apparently concedes that a partnership agreement can be amended during the term of a partnership to alter the respective interests in partnership income or loss. See, e. g., John G. Curtis, 12 T. C. 810, affd. (C. A. 7) 183 F. 2d 7; Frederick S. Klein, 25 T. C. 1045. Petitioner on the other hand appears to accept the proposition that a partner may not deduct as a personal expense or loss any part of tRe partnership expenditures. Western Construction Co., 14 T. C. 453, 471, affirmed per curiam (C.…
2Cases cited17 opinions
- Magruder v. SuppleeSupreme Court of the United States · 1942
- Podems v. CommissionerUnited States Tax Court · 1955
- Helvering v. FitchSupreme Court of the United States · 1940
- Helvering v. LeonardSupreme Court of the United States · 1940
- Towers v. CommissionerUnited States Tax Court · 1955
12 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Farnsworth v. CommissionerUnited States Tax Court · 1958