Kurkjian v. Commissioner
United States Tax Court
Petitioner was an active member of St. James Armenian Church of Los Angeles. During the years 1968, 1969, 1970, and 1971 petitioner paid legal fees incurred in defense of several actions brought against him by St. James for breach of fiduciary duty. Petitioner cross-claimed in one of the actions for collection of principal and interest on a loan made by petitioner to St. James.
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Petitioner was an active member of St. James Armenian Church of Los Angeles. During the years 1968, 1969, 1970, and 1971 petitioner paid legal fees incurred in defense of several actions brought against him by St. James for breach of fiduciary duty. Petitioner cross-claimed in one of the actions for collection of principal and interest on a loan made by petitioner to St. James. Held, the portion of the legal fees attributable to the collection of interest on the loan by petitioner to St. James is deductible under sec. 212(1). Held, further, remainder of legal fees do not qualify as deductible…
1Opinion of the Court
OPINION
Petitioner, maintains that he is entitled to a deduction for the attorney fees paid in the years 1968, 1969, 1970, and 1971 in defense of law suits commenced against him by the St. James Armenian Church. Petitioner has submitted four alternative grounds upon which he bases his claim for the deduction of these attorney fees.
Trade or Business Expenses: Section 162
Petitioner first argues that he was in the trade or business of rendering services to his church and that the attornéy fees were ordinary and necessary expenses incurred in that trade or business. Respondent argues that…
2Cases cited14 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- United States v. GilmoreSupreme Court of the United States · 1963
- Primuth v. CommissionerUnited States Tax Court · 1970
- Clement L. Hirsch v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
- Lykes v. United StatesSupreme Court of the United States · 1952
9 more not listed; retrieve them via the Exa API.
3Cited by24 opinions
- O'Malley v. CommissionerUnited States Tax Court · 1988
- Spector v. CommissionerUnited States Tax Court · 1979
- Guill v. CommissionerUnited States Tax Court · 1999
- Cruttenden v. CommissionerUnited States Tax Court · 1978
- Dileonardo v. CommissionerUnited States Tax Court · 2000
19 more not listed; retrieve them via the Exa API.