Legal Opinion
Levitt & Sons, Inc. v. Nunan
Court of Appeals for the Second Circuit
Decided May 22, 1944No. 182PublishedCited by 50 opinions
1Opinion of the Court
L. HAND, Circuit Judge.
The question upon this appeal is whether the taxpayer shall be allowed to deduct a payment of $65,000, made to settle a threatened law suit, on the theory that it was “an ordinary and necessary expense” of “carrying on” its “business”, (§ 23(a) (1) of the Revenue Act of 1938, 26 U.S.C.A. Int.Rev.Code, § 23(a) (1)); or whether it can use the payment only to increase the “basis” of a gain or loss. An incidental and subsidiary question is whether the payment was a “loss” under § 23(f). The taxpayer is a corporation made up of six shareholders, Abraham Levitt and his wife,…
2Cases cited10 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Kornhauser v. United StatesSupreme Court of the United States · 1928
- Murphy Oil Co. v. BurnetCourt of Appeals for the Ninth Circuit · 1932
5 more not listed; retrieve them via the Exa API.
3Cited by50 opinions
- Hochschild v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1947
- United States v. Philip K. Smith, United States of America v. McIver & Smith Fabricators, Inc.Court of Appeals for the Fifth Circuit · 1969
- Joseph Lewis v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1958
- Industrial Aggregate Company, a Corporation v. United StatesCourt of Appeals for the Eighth Circuit · 1960
- Walter E. Ditmars and Jennie J. Ditmars v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1962
45 more not listed; retrieve them via the Exa API.