Madden v. Commissioner
United States Tax Court
Held, that legal fees paid by petitioners in unsuccessful attempts to limit the condemnation of their commercial orchard property by a public utility district to the taking of a flowage easement rather than a fee simple interest are deductible as ordinary and necessary expenses of such business under sec. 162(a), I.R.C. 1954. L. B. Reakirt, 29 B.T.A. 1296, affirmed per curiam 84 F.2d 996 (C.A. 6, 1936), followed.
1Opinion of the Court
Dawson, Judge-:
Respondent determined the following deficiencies in the petitioners’ Federal income taxes:
Taxable year ended Deficiency
June 30, 1965_ $137. 00
June 30, 1966___ 1, 529.57
June 30, 1967_'_ 369.00
June 30, 1968_ 322.00
Various issues have been conceded by the parties. The only issue presented for our decision is whether amounts paid by petitioners during the taxable years 1966 and 1967 in unsuccessfully attempting to limit the condemnation of their real property to the taking of a flow-age easement rather than a fee simple interest constitute nondeductible capital expenditures or…
2Cases cited19 opinions
- United States v. GilmoreSupreme Court of the United States · 1963
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Trust Under the Will of Bingham v. CommissionerSupreme Court of the United States · 1945
- Harrison E. Spangler and Myrtle B. Spangler v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
- Kasey v. CommissionerUnited States Tax Court · 1970
14 more not listed; retrieve them via the Exa API.
3Cited by22 opinions
- Blaine M. And Virginia C. Madden v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1975
- Soelling v. CommissionerUnited States Tax Court · 1978
- Wagner v. CommissionerUnited States Tax Court · 1982
- Mosby v. CommissionerUnited States Tax Court · 1986
- BHA Enterprises, Inc. v. CommissionerUnited States Tax Court · 1980
17 more not listed; retrieve them via the Exa API.