Ordinary And Necessary Business Expenses

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

• Briarcuff Candy Corp. v. Commissioner OF Internal Revenue
  475 F.2d 775· 2d Cir.· 1973-03-12 ·cited 26×
  The court held that expenditures made by Loft Candy Corp. to develop a market for selling its candy through independent retail outlets were deductible as ordinary and necessary business expenses, not capital expenditures.
• Anchor Coupling Co., Inc. v. United States
  427 F.2d 429· 7th Cir.· 1970-05-28 ·cited 26×
  A settlement payment made to resolve litigation seeking specific performance of a contract for the sale of a company's assets is a nondeductible capital expenditure, not an ordinary and necessary business expense.
• VAN Zandt v. Commissioner OF Internal Revenue
  341 F.2d 440· 5th Cir.· 1965-02-12 ·cited 26×
  Rent payments made pursuant to a pre-arranged sale and lease-back transaction, where the taxpayer retained possession and control of the property, are not deductible as ordinary and necessary business expenses.
• Patterson v. Thomas
  289 F.2d 108· 5th Cir.· 1961-03-16 ·cited 26×
  The dissenting judge argues that expenses incurred by an employee and his wife for attending a company convention, which was effectively required for continued employment and advancement, should be considered ordinary and necessary business expenses deductible under Section 162(a
• White v. Commissioner OF Internal Revenue
  227 F.2d 779· 6th Cir.· 1955-12-16 ·cited 26×
  The court held that expenses incurred in operating a ballistics laboratory were not deductible as ordinary and necessary business expenses or losses from a transaction entered into for profit because there was no profit motive.
• Safety Tube Corp. v. Commissioner of Internal Revenue
  168 F.2d 787· 6th Cir.· 1948-06-01 ·cited 26×
  Legal expenses incurred in defending or protecting title to property are capital expenditures and not deductible as ordinary and necessary business expenses. Sums received under a claim of right, even if subject to litigation, are taxable.
• Wallace v. Commissioner OF Internal Revenue (two cases)
  144 F.2d 407· 9th Cir.· 1944-07-17 ·cited 26×
  Taxpayers are entitled to deduct living expenses incurred while working away from their established home, as 'home' in the tax code refers to the taxpayer's actual dwelling place, not their place of business.
• Ohmer Register Co. v. Commissioner of Internal Revenue
  131 F.2d 682· 6th Cir.· 1942-11-30 ·cited 26×
  The court held that sales agents' commissions, when treated as earned and definite obligations by both the company and agents on the accrual basis, are deductible as ordinary and necessary business expenses, even if payment is contingent on customer collection.
• Commissioner of Internal Revenue v. Textile Mills Sec. Corp.
  117 F.2d 62· 3d Cir.· 1940-12-07 ·cited 26×
  The court held that expenses incurred in carrying on a trade or business are deductible as ordinary and necessary expenses, even if the business itself is against public policy or criminal. The determination of "ordinary" and "necessary" is made in light of the specific business,
• Ditmars v. Commissioner OF Internal Revenue
  302 F.2d 481· 2d Cir.· 1962-04-13 ·cited 25×
  The court held that legal fees and settlement payments are deductible under I.R.C. §§ 162 and 212 to the extent they relate to a taxpayer's trade or business or income-producing activities, even if paid after the activity ceased, but not if they arise from purely personal matters
• The Paramount Fin. Co. v. The United States
  304 F.2d 460· Ct. Cl.· 1962-06-06 ·cited 24×
  Payments made to officers for referring insurance business, even if potentially violating state law, are deductible business expenses if the state's regulatory authority did not determine a violation of public policy. The Commissioner's determination of a reasonable addition to a
• Gravois Planing Mill Co. v. Commissioner OF Internal Revenue
  299 F.2d 199· 8th Cir.· 1962-02-14 ·cited 24×
  The court held that legal fees and expenses incurred by a corporation in connection with a partial liquidation are deductible as ordinary and necessary business expenses, provided the dominant aspect of the transaction is the liquidation itself and not a reorganization or recapit
• Noland v. Commissioner OF Internal Revenue
  269 F.2d 108· 4th Cir.· 1959-06-10 ·cited 24×
  Expenses voluntarily incurred by a corporate executive for the benefit of the corporation, even if they enhance his personal standing or are indirectly related to business, are generally not deductible as business expenses on his personal tax return unless proven to be directly r
• Williams v. United States
  245 F.2d 559· 5th Cir.· 1957-06-18 ·cited 24×
  The court held that a taxpayer seeking a refund bears the burden of proving with substantiality how much entertainment expense was actually paid or incurred, and a court is not compelled to estimate such expenses without sufficient evidence.
• Commissioner OF Internal Revenue v. The Bagley & Sewall Co.
  221 F.2d 944· 2d Cir.· 1955-04-21 ·cited 24×
  The dissenting judge argues that the majority improperly created exceptions to the statutory definition of capital assets, leading to unfairness for other taxpayers.
• Nat'l Brass Works, Inc. v. Commissioner of Internal Revenue
  205 F.2d 104· 9th Cir.· 1953-06-05 ·cited 24×
  A payment made to settle a claim for overcharges in violation of price regulations is not an ordinary and necessary business expense deductible for income tax purposes if the overcharges were intentional or resulted from a failure to exercise due care.
• Patton v. Commissioner of Internal Revenue
  168 F.2d 28· 6th Cir.· 1948-04-19 ·cited 24×
  The court held that the compensation paid to Kirk was a reasonable allowance for personal services rendered and thus deductible as an ordinary and necessary business expense.
• Davis v. Commissioner of Internal Revenue
  151 F.2d 441· 8th Cir.· 1945-10-15 ·cited 24×
  Expenses incurred in selling stock are not deductible as ordinary and necessary expenses under § 23(a)(2) of the Revenue Act of 1936, as amended, but rather reduce the sale price. Attorney fees for tax preparation were also not deductible.
• Rugel v. Commissioner of Internal Revenue
  127 F.2d 393· 8th Cir.· 1942-04-14 ·cited 24×
  Payments made for political influence to secure public contracts are not deductible as ordinary and necessary business expenses. The Board of Tax Appeals' findings on deductible expenses are affirmed if supported by substantial evidence.
• Cecil v. Commissioner of Internal Revenue
  100 F.2d 896· 4th Cir.· 1939-01-09 ·cited 24×
  The Court held that the operation of the Biltmore Estate as a public museum and park for an admission charge constituted a "business" for federal income tax purposes, allowing for the deduction of ordinary and necessary expenses. The Court further held that local property taxes a
• Trenton Cotton Oil Co. v. Commissioner of Internal Revenue
  147 F.2d 33· 6th Cir.· 1945-02-08 ·cited 23×
  The court held that losses from commodity futures transactions, when not used for hedging, are capital losses subject to Section 117 limitations, and simultaneous repurchase of similar futures contracts constitutes a wash sale under Section 118, disallowing loss recognition in th
• First Nat'l Bank of S.C. v. United States
  558 F.2d 721· 4th Cir.· 1977-07-08 ·cited 22×
  The court held that pre-operational assessments paid by member banks to a nonprofit cooperative association for credit card services are deductible as ordinary and necessary business expenses.
• United States v. Transamerica Corp.
  392 F.2d 522· 9th Cir.· 1968-03-08 ·cited 22×
  Expenses incurred in divesting banking assets under the Bank Holding Company Act are deductible as ordinary business expenses, not capitalizable reorganization expenses. A transfer of property to a city under compulsion and for direct economic benefit is not a deductible charitab
• Steinhort v. Commissioner OF Internal Revenue
  335 F.2d 496· 5th Cir.· 1964-08-11 ·cited 22×
  The court affirmed the Tax Court's decision, allowing deductions for transportation costs.
• United States v. Sherrill O. and Doris M. Woodall
  255 F.2d 370· 10th Cir.· 1958-05-06 ·cited 22×
  Reimbursements for employee relocation expenses are considered gross income and the expenses are not deductible business expenses.
• Burton-Sutton Oil Co., Inc. v. Commissioner of Internal Revenue
  150 F.2d 621· 5th Cir.· 1945-07-06 ·cited 22×
  Attorney's fees and costs incurred to resolve a boundary dispute in a condemnation proceeding are deductible as ordinary and necessary business expenses, not capital expenditures.
• Helvering v. Stormfeltz
  142 F.2d 982· 8th Cir.· 1944-06-03 ·cited 22×
  The court held that litigation expenses and attorney fees are deductible only to the extent they are allocable to the recovery of interest income, not to the recovery of capital.
• W. F. Young, Inc. v. Commissioner of Internal Revenue
  120 F.2d 159· 1st Cir.· 1941-05-23 ·cited 22×
  Advances made to a subsidiary with no expectation of repayment are not deductible as bad debts, even if legally enforceable, as they are considered gifts or voluntary payments, not true debts.
• Commissioner of Internal Revenue v. Weisman
  197 F.2d 221· 1st Cir.· 1952-06-09 ·cited 21×
  The taxpayer was entitled to subtract the full cost of goods sold from gross income, even when paying above ceiling prices, because Congress did not enact a specific sanction for such overpayments in the tax laws.
• J.R. Betson, Jr. v. Comm'r OF Internal Revenue Serv.
  802 F.2d 365· 9th Cir.· 1986-10-17 ·cited 20×
  Shareholders cannot deduct expenses or losses incurred by their corporation, as these are capital contributions or loans, not ordinary and necessary business expenses of the shareholder. However, a negligence penalty may be reversed if the taxpayer reasonably relied on profession
• NCNB Corp. v. United States
  684 F.2d 285· 4th Cir.· 1982-07-13 ·cited 20×
  The dissent argues that the majority's interpretation of IRC § 195 and prior case law is incorrect, leading to an unjustified tax windfall.
• Connery v. United States
  460 F.2d 1130· 3d Cir.· 1972-05-22 ·cited 20×
  Tax benefit principles apply to Section 337 liquidations, and legal fees incident to the sale of corporate assets are not deductible as ordinary business expenses.
• E. I. du Pont de Nemours & Co. v. United States
  432 F.2d 1052· 3d Cir.· 1970-10-13 ·cited 20×
  The court held that the transfer of Brazilian patent rights qualified for capital gains treatment, but legal expenses incurred in reorganizing a Canadian subsidiary were capital expenditures and not deductible as ordinary business expenses.
• Ritter v. The United States
  393 F.2d 823· Ct. Cl.· 1968-04-19 ·cited 20×
  The court held that reimbursements for indirect moving expenses, including costs associated with selling a home and purchasing a new one, constitute taxable ordinary income to the employee. Furthermore, payments made to alleviate the financial loss on the sale of a residence due
• United States v. Morton
  387 F.2d 441· 8th Cir.· 1968-01-03 ·cited 20×
  The court held that the gain from an involuntary fire conversion is non-recognizable under § 337(a) if the 'sale or exchange' occurs after the adoption of a liquidation plan, but expenses incurred in processing the fire loss claim are capital expenditures, not ordinary business e
• Irby Constr. Co. v. United States
  290 F.2d 824· Ct. Cl.· 1961-06-07 ·cited 20×
  The court held that the plaintiff corporation was entitled to a refund for taxes paid on disallowed deductions for executive compensation, as the court determined a higher amount of reasonable compensation than the Commissioner allowed.
• Lutz v. Commissioner OF Internal Revenue
  282 F.2d 614· 5th Cir.· 1960-09-09 ·cited 20×
  Payments made by a taxpayer to creditors of controlled corporations are deductible as ordinary and necessary business expenses if made to preserve the taxpayer's own credit and business standing, even if not legally obligated.
• Crowther v. Commissioner OF Internal Revenue
  269 F.2d 292· 9th Cir.· 1959-07-29 ·cited 20×
  The court held that automobile and jeep expenses incurred by the taxpayer for transporting tools and equipment to and from temporary logging job sites were deductible business expenses, not personal commuting expenses.
• Am. Props., Inc. v. Commissioner OF Internal Revenue
  262 F.2d 150· 9th Cir.· 1958-12-10 ·cited 20×
  The court held that the tax court's findings that expenditures were personal and not for profit were substantially supported by evidence and not clearly erroneous.
• Ellis Campbell, Jr. v. Fields
  229 F.2d 197· 5th Cir.· 1956-01-27 ·cited 20×
  The judgment of the trial court should be reversed because the expenditures in question are not deductible as ordinary and necessary business expenses or non-business expenses for income production or conservation.
• Byers v. Commissioner of Internal Revenue
  199 F.2d 273· 8th Cir.· 1952-10-29 ·cited 20×
  The court held that the Tax Court was entitled to view the excess payments for gasoline as a diversion of corporate earnings and dividend distributions, rather than deductible expenses or income to the partnership.
• Missouri-Kansas Pipe Line Co. v. Commissioner of Internal Revenue
  148 F.2d 460· 3d Cir.· 1945-03-09 ·cited 20×
  The Tax Court correctly determined that expenses incurred by a parent corporation in litigation and stock distributions related to its subsidiary were not ordinary and necessary business expenses or deductible losses.
• Hardesty et ux. v. Commissioner of Internal Revenue
  127 F.2d 843· 5th Cir.· 1942-04-29 ·cited 20×
  Intangible drilling and development costs incurred as consideration for assignment of oil leases are not deductible as ordinary and necessary business expenses but are capital expenditures.
• Cal. & Hawaiian Sugar Ref. Corp. v. The United States
  311 F.2d 235· Ct. Cl.· 1962-12-05 ·cited 19×
  Refunded processing and floor stock taxes are a return of capital, not taxable income, because the taxpayer received no prior tax benefit. Legal and expert-witness fees incurred to secure these refunds are deductible as ordinary and necessary business expenses.
• Cruttenden v. Commissioner OF Internal Revenue
  644 F.2d 1368· 9th Cir.· 1981-05-15 ·cited 18×
  Expenses incurred to recover securities loaned under a subordination agreement are deductible as ordinary and necessary expenses for the management, conservation, or maintenance of property held for the production of income, and are not capital expenditures for defense or perfect
• Iowa State Univ. of Sci. & Tech. v. The United States
  500 F.2d 508· Ct. Cl.· 1974-07-19 ·cited 18×
  The court should have allowed excess expenses of radio stations to offset TV profits due to their integration.
• Hardin v. United States
  461 F.2d 865· 5th Cir.· 1972-06-07 ·cited 18×
  The court held that the corporations' accumulation of earnings beyond reasonable business needs supported the imposition of the accumulated earnings tax, and that payments made by a corporation at the direction of its sole shareholder to a relative for personal reasons constitute
• Alphaco, Inc. v. Nelson
  385 F.2d 244· 7th Cir.· 1967-10-26 ·cited 18×
  Expenditures incurred by a corporation directly related to the sale of its capital assets during a Section 337 liquidation are not deductible as ordinary and necessary business expenses.
• Peoples Life Ins. Co. v. The United States
  373 F.2d 924· Ct. Cl.· 1967-03-17 ·cited 18×
  Expenditures by an employer for employee conventions, even if including social events and qualifying based on sales performance, do not constitute 'wages' subject to withholding if the dominant purpose is the employer's business objective.
• Wells-Lee v. Stiles
  360 F.2d 665· 8th Cir.· 1966-05-10 ·cited 18×
  The court held that staff fees paid for hospital privileges were capital expenditures, not currently deductible business expenses, but that these payments could be amortized over the life of the hospital for which they were primarily intended.