Butler v. Commissioner
United States Tax Court
Petitioner, who was engaged in the business of acting as a consultant, officer, or director of public utility corporations, was an officer and director of a corporation undergoing reorganization under section 77B of the Bankruptcy Act. He paid $ 9,976.50 in settlement of a claim which arose from an alleged breach of a fiduciary duty arising out of certain profits made by his wife with respect to her purchases and sales of bonds of the corporation.
Read the full summary
Petitioner, who was engaged in the business of acting as a consultant, officer, or director of public utility corporations, was an officer and director of a corporation undergoing reorganization under section 77B of the Bankruptcy Act. He paid $ 9,976.50 in settlement of a claim which arose from an alleged breach of a fiduciary duty arising out of certain profits made by his wife with respect to her purchases and sales of bonds of the corporation. Held, such payment was made in connection with petitioner's trade or business; and, since its allowance as a deduction would not frustrate a…
1Opinion of the Court
OPINION.
Bice, Judge:
The first issue is whether the-respondent erred in disallowing the deduction of $9,976.50 paid by petitioner in 1946 to the Company as a compromise settlement pursuant to an order of the United States Disctrict Court for the Eastern District of Pennsylvania. Respondent disallowed said deduction on the ground that it was deductible neither as a business expense under section 23 (a) (1) of the Internal Revenue Code, nor as a loss under section 23 (e) (1) or (2) ,1 Both parties agree that petitioner’s business was that of acting as a consultant, officer, or director of public…
2Cases cited3 opinions
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Great Island Holding Corp. v. CommissionerUnited States Tax Court · 1945
3Cited by31 opinions
- Fuller v. CommissionerUnited States Tax Court · 1953
- Stamos v. CommissionerUnited States Tax Court · 1954
- Marks v. CommissionerUnited States Tax Court · 1956
- Mitchell v. CommissionerUnited States Tax Court · 1969
- Jordan v. CommissionerUnited States Tax Court · 1973
26 more not listed; retrieve them via the Exa API.