Gordon v. Commissioner
United States Tax Court
Cash basis petitioners, d.b.a. Rialto Theater, and Pioneer Drive-In Theatre, Inc., agreed in writing to initiate legal action against several defendants for injuries sustained under the Clayton (Antitrust) Act in the name of the party having the best cause of action. The parties agreed to split legal costs and any recovery.
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Cash basis petitioners, d.b.a. Rialto Theater, and Pioneer Drive-In Theatre, Inc., agreed in writing to initiate legal action against several defendants for injuries sustained under the Clayton (Antitrust) Act in the name of the party having the best cause of action. The parties agreed to split legal costs and any recovery. Pursuant to their agreement, a successful civil action was brought in the name of Pioneer Drive-In Theatre, Inc. Pioneer Drive-In Theatre, Inc., was awarded a judgment on the verdict in the amount of $ 90,000 plus attorney's fees and costs. The defendants agreed to settle…
1Opinion of the Court
OPINION
Fay, Judge:
Respondent asserted deficiencies in Federal income tax of Harry A. Gordon and Ruth E. Gordon in the amount of $3,291.38 for the taxable year 1962.1
The issues for decision are (1) whether petitioners are entitled in 1962 to the special income-averaging provisions afforded taxpayers under sections 1305 or 1306 of the Internal Revenue Code of 1954 and (2) in the event petitioners are entitled to the special treatment of sections 1305 or 1306, whether petitioners as cash basis taxpayers may deduct certain expenditures only in the years in which they were actually made.
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2Cited by5 opinions
- Dick v. CommissionerUnited States Tax Court · 1968
- Gordon v. CommissionerUnited States Tax Court · 1967
- Holmes v. Comm'rUnited States Tax Court · 2007
- Sandoval v. CommissionerUnited States Tax Court · 1979
- Tranquilli v. CommissionerUnited States Tax Court · 1980