Ordinary And Necessary Business Expenses

520 Florida cases classified under this topic · sorted by citation count · see the citation graph · browse and sort

• Newark Morning Ledger Co. v. The United States
  539 F.2d 929· 3d Cir.· 1976-06-29 ·cited 107×
  Legal expenses incurred by a shareholder in a derivative suit to prevent the siphoning of corporate assets are deductible as ordinary business expenses, not capital expenditures, if the origin of the litigation is to protect the shareholder's investment.
• Pridemark v. Commissioner OF Internal Revenue
  345 F.2d 35· 4th Cir.· 1965-04-23 ·cited 76×
  The court held that the sale of uncompleted sales contracts by a liquidating corporation resulted in ordinary income, not tax-exempt gain, and that the transaction did not constitute a 'reincorporation' because it lacked tax avoidance motive.
• Jones' Estate v. Commissioner of Internal Revenue
  127 F.2d 231· 5th Cir.· 1942-04-06 ·cited 60×
  Attorneys' fees and expenses incurred to defend title to estate property are capital expenditures, not deductible ordinary and necessary business expenses.
• United States v. Victor H. and Elsie Akin
  248 F.2d 742· 10th Cir.· 1957-10-19 ·cited 58×
  Portions of annual assessments paid by farmers to mutual ditch companies for retiring long-term debt and purchasing rights of way are not deductible as ordinary and necessary business expenses.
• Greenspon v. Commissioner OF Internal Revenue
  229 F.2d 947· 8th Cir.· 1956-02-02 ·cited 54×
  The court held that the liquidation of pipe assets qualified for capital gains treatment, but expenses for maintaining a horticultural showplace on a principal stockholder's farm were not ordinary and necessary business expenses.
• Burford-Toothaker Tractor Co. v. Commissioner of Internal Revenue
  192 F.2d 633· 5th Cir.· 1951-11-16 ·cited 54×
  The Tax Court's findings regarding reasonable compensation were not clearly erroneous, and its decision is affirmed.
• The Colo. Springs Nat'l Bank v. United States
  505 F.2d 1185· 10th Cir.· 1974-11-11 ·cited 52×
  The court held that start-up costs incurred by a bank to participate in a credit card system are deductible as ordinary and necessary business expenses under 26 U.S.C. § 162(a), even if they generate future economic benefits, as they do not create a distinct and recognizable prop
• Clement L. Hirsch v. Commissioner OF Internal Revenue
  315 F.2d 731· 9th Cir.· 1963-03-22 ·cited 50×
  The court held that the taxpayer failed to demonstrate that his activities as an officer, director, and executive member of the Jockey Club constituted a "trade or business" for the purpose of deducting expenses and a worthless debt.
• Trent v. Commissioner OF Internal Revenue
  291 F.2d 669· 2d Cir.· 1961-06-09 ·cited 50×
  An employee who makes loans to his employer to retain his job may deduct such loans as a business bad debt if they become worthless.
• Logan Lumber Co. v. Commissioner OF Internal Revenue
  365 F.2d 846· 5th Cir.· 1966-08-15 ·cited 49×
  The court held that the Tax Court's findings regarding excessive salaries, rental deductions, and late filing penalties were not clearly erroneous, but remanded for reconsideration of legal and auditing expenses in light of a new Supreme Court decision.
• Barnhill v. Commissioner of Internal Revenue
  148 F.2d 913· 4th Cir.· 1945-04-09 ·cited 48×
  The court held that a taxpayer cannot deduct living and traveling expenses incurred because they chose to maintain a home at a distance from their place of business, as such expenses are not necessitated by the business itself.
• Richmond Television Corp. v. United States
  345 F.2d 901· 4th Cir.· 1965-04-16 ·cited 44×
• Loftin & Woodard, Inc. v. United States
  577 F.2d 1206· 5th Cir.· 1978-08-09 ·cited 42×
  The court held that the district court erred by measuring constructive dividends based on costs without first determining their existence and by equating costs with fair market value without sufficient justification.
• Wright v. Hartsell
  305 F.2d 221· 9th Cir.· 1962-07-10 ·cited 42×
  Travel expenses incurred by a taxpayer who maintains a home in one location and works at a remote, uninhabitable site are deductible if the employment is temporary or if the taxpayer cannot reasonably be expected to move closer due to the site's unfitness.
• Hotel Kingkade v. Commissioner of Internal Revenue
  180 F.2d 310· 10th Cir.· 1950-02-10 ·cited 42×
  Expenditures for repairs and replacements that materially add to property value or prolong its life are capital expenditures, not deductible ordinary and necessary business expenses.
• George v. Zmuda and Walburga Zmuda
  731 F.2d 1417· 9th Cir.· 1984-04-30 ·cited 41×
  The court held that the Tax Court correctly determined the trusts were shams, disallowed deductions, and assessed penalties because the Zmudas failed to demonstrate reasonable inquiry into the legality of the tax avoidance scheme.
• Universal Oil Prods. Co. v. Campbell (United States
  181 F.2d 451· 7th Cir.· 1950-04-06 ·cited 41×
  The court held that the plaintiff corporation failed to qualify for tax exemption under § 101(6) of the Internal Revenue Code because it was originally organized as a business corporation for profit, and subsequent transfer of ownership to an exempt trust did not retroactively ch
• Skenandoa Rayon Corp. v. Commissioner of Internal Revenue
  122 F.2d 268· 2d Cir.· 1941-07-31 ·cited 41×
  The court held that the taxpayer was not entitled to a larger dividends paid credit because the exchange of old preferred stock for new preferred stock and cash, in connection with a recapitalization, was a tax-free exchange, and the attorney's fees for the recapitalization were
• Gen. Bancshares Corp. v. Commissioner OF Internal Revenue
  326 F.2d 712· 8th Cir.· 1964-01-28 ·cited 38×
  Costs incurred by a corporation in issuing non-taxable stock dividends are not deductible as ordinary and necessary business expenses under § 162(a) of the Internal Revenue Code, as they are capital expenditures.
• Levitt & Sons, Inc. v. Nunan
  142 F.2d 795· 2d Cir.· 1944-05-22 ·cited 38×
  The court held that a payment made to settle a threatened lawsuit, even if the claim was baseless, could be an ordinary and necessary business expense if made to avoid damage to the taxpayer's credit and business reputation, rather than solely to defend title to property.
• Commissioner OF Internal Revenue v. Peurifoy
  254 F.2d 483· 4th Cir.· 1957-11-11 ·cited 36×
  The court held that the Tax Court erred in finding the construction workers' employment temporary, thus disallowing deductions for living and travel expenses.
• Bowers v. Lumpkin
  140 F.2d 927· 4th Cir.· 1944-02-04 ·cited 36×
  Legal expenses incurred to defend title to income-producing property are not deductible ordinary and necessary expenses, even under the broadened scope of the 1942 Revenue Act.
• Sibla v. Commissioner OF Internal Revenue
  611 F.2d 1260· 9th Cir.· 1980-01-07 ·cited 34×
  Expenses for mandatory firehouse meals are deductible as ordinary and necessary business expenses under § 162(a) and excludable from income under § 119 because the circumstances, including the employer's requirement to participate and the inability to leave the premises, made the
• Mfrs. Hanover Tr. Co. Under Indenture Dated November 15 v. The United States
  312 F.2d 785· Ct. Cl.· 1963-02-06 ·cited 34×
  Legal expenses incurred to defend or perfect title to trust property are capital expenditures and not deductible as ordinary and necessary expenses. Expenses allocable to tax-exempt income are not deductible.
• Hales-Mullaly, Inc. v. Commissioner of Internal Revenue
  131 F.2d 509· 10th Cir.· 1942-11-06 ·cited 34×
  Expenditures made in settlement of litigation and for related legal fees are not deductible as ordinary and necessary business expenses if the underlying liability giving rise to the expenditure is not ordinary and customary in the taxpayer's trade or business, or if the liabilit
• Snyder v. United States
  674 F.2d 1359· 10th Cir.· 1982-03-30 ·cited 32×
• B. Forman Co., Inc. v. Commissioner OF Internal Revenue
  453 F.2d 1144· 2d Cir.· 1972-01-10 ·cited 32×
  The court held that Section 482 of the Internal Revenue Code authorized the Commissioner to allocate interest income to taxpayers on interest-free loans made to a controlled corporation, and that annual payments were not deductible business expenses.
• Parker v. Commissioner OF Internal Revenue
  365 F.2d 792· 8th Cir.· 1966-09-09 ·cited 32×
  The court held that the Foundation for Divine Meditation (F.D.M.) was not entitled to tax-exempt status because it had a substantial non-religious purpose, and that legal expenses incurred by F.D.M. to defend its founder, Dr. Parker, were not taxable income to him.
• Indus. Aggregate Co. v. United States
  284 F.2d 639· 8th Cir.· 1960-11-29 ·cited 32×
  Expenditures made to settle a lawsuit primarily concerning alleged violations of lease operating covenants, rather than to defend or perfect title to the leasehold, are deductible as ordinary and necessary business expenses.
• Jerry Rossman Corp. v. Commissioner of Internal Revenue
  175 F.2d 711· 2d Cir.· 1949-07-05 ·cited 32×
  The court held that a payment made to the United States representing overcharges to customers, even if considered a penalty, was deductible as it did not frustrate the policies of the Emergency Price Control Act of 1942.
• Limericks, Inc. v. Commissioner of Internal Revenue
  165 F.2d 483· 5th Cir.· 1948-01-23 ·cited 32×
  The court held that the Tax Court was justified in finding that rental payments were excessive and constituted a distribution of profits, not ordinary business expenses.
• Lincoln Elec. Co. v. Commissioner of Internal Revenue
  162 F.2d 379· 6th Cir.· 1947-06-05 ·cited 32×
  The court held that payments made by a taxpayer for employee retirement annuity policies and a trust fund, intended to foster employee loyalty and productivity, constituted ordinary and necessary business expenses deductible under the Internal Revenue Code.
• Dunn & McCARTHY, Inc. v. Commissioner of Internal Revenue
  139 F.2d 242· 2d Cir.· 1943-12-10 ·cited 32×
  The court held that the taxpayer's payment to its salesmen of loans made to its deceased president was an allowable deduction from gross income as an ordinary and necessary business expense.
• United States v. Smith
  418 F.2d 589· 5th Cir.· 1969-09-22 ·cited 30×
  The court held that the district court erred in finding no constructive dividend and that the issue of whether the corporation assumed the partnership's liabilities must be fully determined on remand.
• Young & Rubicam Inc. v. The United States
  410 F.2d 1233· Ct. Cl.· 1969-05-16 ·cited 30×
  A taxpayer may deduct expenses paid for personnel working abroad if they prove the services were directly and proximately for the taxpayer's own business benefit, not solely for a subsidiary's benefit. Income allocated under Section 482 is permissible if the Commissioner demonstr
• Int'l Trading Co. v. Commissioner OF Internal Revenue
  275 F.2d 578· 7th Cir.· 1960-03-07 ·cited 30×
  The court held that expenses for maintaining and depreciating a property primarily used for the personal benefit of stockholders, rather than for business purposes or income production, are not deductible as ordinary and necessary business expenses.
• Brown v. Commissioner OF Internal Revenue (two cases)
  180 F.2d 926· 3d Cir.· 1950-02-28 ·cited 30×
  Payments made as rent and royalties to a valid, irrevocable trust with an independent trustee are deductible as ordinary and necessary business expenses, even if the trust was created by the taxpayer for their children and leased back to the taxpayer.
• Bennett et ux. v. Commissioner of Internal Revenue
  139 F.2d 961· 8th Cir.· 1944-01-17 ·cited 30×
  The court held that a negligence penalty was improperly imposed as the deficiencies arose from a mistaken conception of legal rights rather than negligence, but affirmed other Tax Court decisions regarding deductions and income inclusions.
• Coburn v. Commissioner of Internal Revenue
  138 F.2d 763· 2d Cir.· 1943-11-29 ·cited 30×
  The court held that the taxpayer's 'home' for tax purposes remained in New York, allowing deduction for living expenses incurred while working temporarily in California. Depreciation on the automobile was denied due to lack of apportionment basis.
• A. Giurlani & Bro., Inc. v. Commissioner of Internal Revenue
  119 F.2d 852· 9th Cir.· 1941-05-15 ·cited 30×
  A payment made by a taxpayer to creditors of a foreign supplier to prevent the supplier's bankruptcy and maintain a source of supply is not deductible as an ordinary and necessary business expense or as a business loss.
• Stubbs v. United States
  445 F.2d 1142· 5th Cir.· 1971-06-25 ·cited 28×
  The court held that per diem living allowance payments made to employees working on a temporary job away from the employer's main office were not 'wages' subject to withholding taxes under Sections 3401(a) and 3402(a) of the Internal Revenue Code.
• Rosenspan v. United States
  438 F.2d 905· 2d Cir.· 1971-02-18 ·cited 28×
  The court held that a taxpayer cannot deduct unreimbursed expenses for meals and lodging incurred while traveling for business if they do not have a "home" in the ordinary sense from which to be "away."
• Knetsch v. The United States
  348 F.2d 932· Ct. Cl.· 1965-07-16 ·cited 28×
  The court held that the taxpayers' loss from an annuity transaction was not deductible under I.R.C. § 165(c)(2) because the primary motive was tax avoidance, not profit.
• James v. United States
  308 F.2d 204· 9th Cir.· 1962-09-21 ·cited 28×
  A taxpayer must maintain a "home" with substantial continuing living expenses at a permanent residence to deduct travel expenses for meals and lodging while away from that home.
• Lewis v. Commissioner OF Internal Revenue
  253 F.2d 821· 2d Cir.· 1958-04-07 ·cited 28×
  The court affirmed the Tax Court's decision, holding that expenses incurred in defending against charges of mental incompetency, in a legal separation action, and in an accounting action related to property title are either personal or capital in nature and thus not deductible fr
• O'Malley v. Cover
  221 F.2d 156· 8th Cir.· 1955-04-05 ·cited 28×
  The court held that the defendant waived its right to challenge the sufficiency of the evidence by failing to properly move for a directed verdict and by not taking specific objections to jury instructions.
• Nachman v. Commissioner of Internal Revenue
  191 F.2d 934· 5th Cir.· 1951-11-02 ·cited 28×
  The court held that the premium paid for a liquor license, which included valuable renewal privileges, constituted a capital expenditure and not a deductible business expense, nor was it depreciable due to its indefinite duration.
• Commissioner of Internal Revenue v. Longhorn Portland Cement Co.
  148 F.2d 276· 5th Cir.· 1945-03-27 ·cited 28×
  Sums paid in compromise of a state's suit for statutory penalties are not deductible as ordinary and necessary business expenses for income tax purposes.
• Helvering v. Wilmington Tr. Co.
  124 F.2d 156· 3d Cir.· 1941-09-03 ·cited 28×
  The court held that a taxpayer's extensive personal investment activities do not constitute a 'trade or business' for the purpose of deducting short sale dividend charges and commissions.
• Tulia Feedlot, Inc. v. United States
  513 F.2d 800· 5th Cir.· 1975-06-02 ·cited 26×
  Payments made to shareholders as guarantors' fees were distributions of property (dividends) and not ordinary and necessary business expenses, as the taxpayer failed to prove the fees were customary or reasonable.