Swaim v. Commissioner
United States Tax Court
A partnership of which petitioner was a member owned a compress and warehouse in West Memphis, Arkansas, and in 1946 listed the property with several real estate agents for sale, none of them exclusive. In 1947, the property was sold to a buyer for $ 175,000. The sale between the partnership and the buyer was effected without the help of any real estate broker.
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A partnership of which petitioner was a member owned a compress and warehouse in West Memphis, Arkansas, and in 1946 listed the property with several real estate agents for sale, none of them exclusive. In 1947, the property was sold to a buyer for $ 175,000. The sale between the partnership and the buyer was effected without the help of any real estate broker. The partnership returned the profits from the sale in 1947, as a capital gain without the deduction of any real estate commission because none was paid. In 1947, a real estate firm brought suit against petitioner and his partner for $…
1Opinion of the Court
OPINION.
Black, Judge:
Tbe only question to be decided is the tax consequences of a $5,000 payment in settlement of a lawsuit. Respondent determined that the payment should reduce the sale price of certain capital assets of the business on which a capital gain was realized. Petitioner contends that it is an ordinary and necessary expense, fully deductible under section 23 (a) (2), Internal Revenue Code, which provides as follows:
SEC. 23. DEDUCTIONS FROM GROSS INCOME.
In computing net income there shall be allowed as deductions:(a) Expenses.—
* * * * * * *(2) Non-trade or non-business expenses. —…
2Cases cited1 opinion
- Braznell v. CommissionerUnited States Tax Court · 1951
3Cited by4 opinions
- Picker v. United StatesUnited States Court of Claims · 1967
- The L. B. Foster Company v. United StatesCourt of Appeals for the Third Circuit · 1957
- Harvey Picker and Jean Picker v. The United States. Harvey Picker and Evelyn Picker, as the Executors of the Estate of James Picker, and Evelyn Picker v. The United StatesUnited States Court of Claims · 1967
- Swaim v. CommissionerUnited States Tax Court · 1953