Walling v. Commissioner
United States Tax Court
The owners of two vessels agreed to transfer them to the X corporation. As required by the agreement and as an incident to the transfer the owners made expenditures for needed repairs to the vessels. Held, such expenditures were capital in nature and were not deductible as ordinary and necessary expenses.
1Opinion of the Court
OPINION
Raum, Judge:
The sole question for decision is whether the amounts totaling $57,567, expended by the Oliver Transportation Co. during the year 1957 represented deductible ordinary and necessary business expenses or nondeductible capital expenditures.
Section 162 of the Internal Nevenue Code of 1954 provides, in pertinent part, that “There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business.” Petitioners contend that the expenditures involved qualify for deduction under this section. They…
2Cases cited2 opinions
- Bloomfield Steamship Co. v. CommissionerUnited States Tax Court · 1959
- Chickasha Cotton Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1930
3Cited by1 opinion
- Walling v. CommissionerUnited States Tax Court · 1965