Holmes Enterprises, Inc. v. Commissioner
United States Tax Court
Petitioner is a corporation whose sole shareholder and president was arrested for transporting marijuana in petitioner's automobile. The automobile was seized and forfeited. Petitioner sought a deduction for the forfeiture as a business expense or a loss. Petitioner also sought deductions for the automobile's depreciation and operating expenses and for legal fees paid in an unsuccessful effort to prevent forfeiture.
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Petitioner is a corporation whose sole shareholder and president was arrested for transporting marijuana in petitioner's automobile. The automobile was seized and forfeited. Petitioner sought a deduction for the forfeiture as a business expense or a loss. Petitioner also sought deductions for the automobile's depreciation and operating expenses and for legal fees paid in an unsuccessful effort to prevent forfeiture. Held, forfeiture resulted in loss which was disallowed for public policy reasons. Also held, depreciation and operating expenses allowed for business use of automobile prior to…
1Opinion of the Court
Holmes Enterprises, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Holmes Enterprises, Inc. v. Commissioner
Docket No. 9346-76
United States Tax Court
69 T.C. 114; 1977 U.S. Tax Ct. LEXIS 32;
October 26, 1977, Filed
Decision will be entered under Rule 155.
Petitioner is a corporation whose sole shareholder and president was arrested for transporting marijuana in petitioner's automobile. The automobile was seized and forfeited. Petitioner sought a deduction for the forfeiture as a business expense or a loss. Petitioner also sought deductions for the automobile's depreciation and…
2Cases cited14 opinions
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Commissioner v. TellierSupreme Court of the United States · 1966
- United States v. Hilton Hotels Corp.Supreme Court of the United States · 1970
- Fuller v. CommissionerUnited States Tax Court · 1953
- Fuller v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1954
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