Ordinary And Necessary Business Expenses

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

• Nat'l Brass Works, Inc. v. Commissioner of Internal Revenue
  182 F.2d 526· 9th Cir.· 1950-05-23 ·cited 14×
  The court held that payments made to the government in compromise of admitted price violations are deductible as ordinary and necessary business expenses if the violations were innocent and unintentional, and not due to a lack of reasonable care.
• Clinton Co. v. Commissioner of Internal Revenue
  159 F.2d 102· 7th Cir.· 1946-12-24 ·cited 14×
  The court held that the Tax Court's finding of unreasonableness for the deducted officers' salaries was supported by substantial evidence and therefore affirmed the decision.
• Holdcroft Transp. Co. v. Commissioner of Internal Revenue
  153 F.2d 323· 8th Cir.· 1946-02-21 ·cited 14×
  Payments made to settle pre-acquisition contingent claims against a predecessor business are capital expenditures, not deductible business expenses or losses, even if the acquisition was a tax-free exchange.
• Hord v. Commissioner of Internal Revenue
  143 F.2d 73· 6th Cir.· 1944-05-29 ·cited 14×
  The court held that the taxpayer failed to meet the burden of proof to establish the correct basis for stock acquired in an exchange, and thus the Commissioner's determination of gain was sustained. Deductions for attorneys' fees and accountant's charges were also disallowed.
• Helvering v. Superior Wines & Liquors, Inc.
  134 F.2d 373· 8th Cir.· 1943-03-22 ·cited 14×
  Payments made to compromise alleged violations of federal liquor laws and associated legal fees are not deductible as ordinary and necessary business expenses. The court also affirmed the Board's finding that the salaries paid to corporate officers were reasonable.
• Schwabacher v. Commissioner of Internal Revenue
  132 F.2d 516· 9th Cir.· 1942-12-12 ·cited 14×
  Expenditures made to acquire or perfect title to a capital asset, even if necessary for business operations, are capital expenditures and not deductible ordinary business expenses.
• Commissioner of Internal Revenue v. Burnett
  118 F.2d 659· 5th Cir.· 1941-03-26 ·cited 14×
  The court held that the taxpayer's stock and commodity trading losses were subject to capital loss limitations, and the attorney's fees paid for a personal tax refund were not deductible as ordinary and necessary business expenses.
• Meiers v. Commissioner OF the Internal Revenue
  782 F.2d 75· 7th Cir.· 1986-01-14 ·cited 13×
  The court held that the Tax Court erred in disallowing home office deductions by applying the 'focal point' test too rigidly, and that the taxpayers' home office qualified as their principal place of business.
• Sparks Nugget, Inc. v. Commissioner OF Internal Revenue
  458 F.2d 631· 9th Cir.· 1972-04-06 ·cited 13×
  The court held that rental payments exceeding reasonable value between related parties are not deductible as ordinary and necessary business expenses under Section 162(a)(3), and excess amounts may constitute constructive dividends. Furthermore, collateral estoppel can be applied
• Donnelly v. Commissioner OF Internal Revenue
  262 F.2d 411· 2d Cir.· 1959-01-19 ·cited 13×
  The court held that automobile operating costs for commuting and expenses for work clothes are not deductible as ordinary and necessary business expenses or medical care expenses.
• Acer Realty Co. v. Commissioner of Internal Revenue
  132 F.2d 512· 8th Cir.· 1942-12-28 ·cited 13×
  The court held that payments to officers for services that resulted in capital asset acquisition were not deductible ordinary business expenses, and that rent was constructively received when mutual debts could have been offset, even if not formally booked.
• Tinkoff v. Commissioner of Internal Revenue
  120 F.2d 564· 7th Cir.· 1941-04-09 ·cited 13×
  The court held that the purported partnerships were not valid for income tax purposes, and expenses related to expunging a suspension order and payments to the petitioner's wife were not deductible business expenses.
• Cent. Tex. Sav. & Loan Ass'n v. United States
  731 F.2d 1181· 5th Cir.· 1984-05-11 ·cited 12×
  Expenditures made in investigating and establishing new branches of a savings and loan association are capital expenditures, not deductible expenses under 26 U.S.C. § 162(a).
• First Sec. Bank OF Idaho v. Commissioner OF Internal Revenue
  592 F.2d 1050· 9th Cir.· 1979-03-01 ·cited 12×
  The cost of a computer program is a capital expense, not an ordinary and necessary business expense, and must be amortized over its useful life.
• Gordon v. Commissioner OF Internal Revenue
  572 F.2d 193· 9th Cir.· 1977-08-26 ·cited 12×
  The court should have allowed the wagering excise tax as a properly accrued deduction for the tax year in question.
• Gino v. Commissioner OF Internal Revenue
  538 F.2d 833· 9th Cir.· 1976-06-16 ·cited 12×
  The court held that the Commissioner's published revenue ruling, which allocates home-office deductions based on actual business use hours, should be followed over the Tax Court's interpretation.
• Mann v. Commissioner OF Internal Revenue
  483 F.2d 673· 8th Cir.· 1973-08-27 ·cited 12×
  The court held that a taxpayer's prepayment for livestock feed constituted a deductible business expense in the year of payment, as it was made pursuant to a binding contract and was not a mere refundable deposit.
• George H. and Sarah Newi v. Commissioner OF Internal Revenue
  432 F.2d 998· 2d Cir.· 1970-10-21 ·cited 12×
  A portion of rent, light, and cleaning expenses for a taxpayer's apartment used as a home office is deductible as an ordinary and necessary business expense.
• Audano v. United States
  428 F.2d 251· 5th Cir.· 1970-06-26 ·cited 12×
  The court held that the trusts were not valid for tax purposes and the rental payments were not deductible business expenses because the arrangement lacked economic reality and the rentals were unreasonable.
• Mitchell v. Commissioner OF Internal Revenue
  428 F.2d 259· 6th Cir.· 1970-06-18 ·cited 12×
  A payment made to settle an alleged violation of Section 16(b) of the Securities Exchange Act of 1934, arising from a stock sale that generated a capital gain, must be treated as a capital loss, not an ordinary business expense, under the tax benefit doctrine of Arrowsmith.
• Hammond Lead Prods., Inc. v. Commissioner OF Internal Revenue
  425 F.2d 31· 7th Cir.· 1970-04-08 ·cited 12×
  The court held that the Tax Court correctly determined that the compensation paid to executive officer William Wilke, Jr. was substantially less than the amounts deducted by the taxpayer corporation.
• United States v. Disney
  413 F.2d 783· 9th Cir.· 1969-06-19 ·cited 12×
  Amounts paid for a taxpayer's wife's travel expenses on business trips are deductible as ordinary and necessary business expenses if her presence has a bona fide business purpose and she substantially assists the taxpayer in fulfilling that purpose.
• United States v. Tauferner
  407 F.2d 243· 10th Cir.· 1969-02-24 ·cited 12×
  The court held that the taxpayer's daily transportation expenses between his residence and a remote work site are personal expenses and not deductible as ordinary and necessary business expenses or traveling expenses while away from home.
• Tyne v. Commissioner OF Internal Revenue
  385 F.2d 40· 7th Cir.· 1967-11-07 ·cited 12×
  The court held that the tax court erred in deeming the expense nondeductible commuting expense without factual findings. The case is remanded for further proceedings.
• Commissioner OF Internal Revenue v. Mendel
  351 F.2d 580· 4th Cir.· 1965-10-08 ·cited 12×
  Unreimbursed moving expenses are not deductible as they are personal expenses, and a taxpayer can claim a dependency exemption if they show they provided over half of the dependent's support, even without precise total cost figures.
• Boyd Constr. Co., Inc. v. The United States
  339 F.2d 620· Ct. Cl.· 1964-12-11 ·cited 12×
  The court held that certain claimed deductions for automobile expenses, union dues, director fees, and officer salaries were either allowable or disallowed based on reasonableness and business necessity.
• Anaheim Union Water Co. v. Commissioner OF Internal Revenue
  321 F.2d 253· 9th Cir.· 1963-07-02 ·cited 12×
  The court held that expenditures by a mutual non-profit water company to furnish water to its shareholders at cost, even if exceeding receipts from those shareholders, are ordinary and necessary business expenses. The court also affirmed the allocation of income and expenses from
• United States v. T. W. and Evelyn B. Wheeler
  311 F.2d 60· 5th Cir.· 1962-12-11 ·cited 12×
  Payments made to settle a lawsuit for specific performance of a stock sale contract are capital expenditures, not deductible expenses, even if the settlement was also intended to prevent a receivership.
• Allied Chem. Corp. v. The United States
  305 F.2d 433· Ct. Cl.· 1962-07-18 ·cited 12×
  The dissenting judge believes legal fees paid to increase the value of a capital asset are not deductible as ordinary and necessary business expenses, contrary to the majority's view.
• United States v. ST. JOE Paper Co.
  284 F.2d 430· 5th Cir.· 1960-12-12 ·cited 12×
  Attorneys' fees paid in acquiring equity ownership of a railway company through a protracted struggle are capital expenditures, not deductible ordinary and necessary business expenses.
• Allen v. Commissioner OF Internal Revenue
  283 F.2d 785· 7th Cir.· 1960-11-03 ·cited 12×
  Payments made to a separate corporation are generally capital losses or non-business bad debts unless directly and integrally related to the taxpayer's own business. However, a payment made to protect the reputation of an established business is deductible as an ordinary business
• Matilda M. Brooks v. Commissioner OF Internal Revenue
  274 F.2d 96· 9th Cir.· 1959-12-21 ·cited 12×
  The court held that the petitioner's travel and living expenses incurred while conducting research in Europe were ordinary and necessary expenses of her trade or business, as she had a profit motive and was engaged in research to maintain her professional standing and secure futu
• York v. Commissioner OF Internal Revenue
  261 F.2d 421· 4th Cir.· 1958-11-06 ·cited 12×
  The court held that the expenditure for an expert survey to determine the potentiality of nearby land for industrial development was a deductible ordinary and necessary business expense.
• United States v. Pate
  254 F.2d 480· 10th Cir.· 1958-04-09 ·cited 12×
  Legal fees incurred to recover damages for the negligent destruction of income-producing property are deductible as ordinary and necessary expenses, not capital expenditures.
• Bonney v. Commissioner OF Internal Revenue
  247 F.2d 237· 2d Cir.· 1957-08-02 ·cited 12×
  The court affirmed the Tax Court's denial of deductions for repair costs, payments to a putative wife, and payments to stop accusations.
• Revere Racing Ass'n, Inc. v. Scanlon
  232 F.2d 816· 1st Cir.· 1956-05-09 ·cited 12×
  The court held that expenditures made to persuade voters to approve pari-mutuel betting on dog races are not deductible as ordinary and necessary business expenses and are prohibited by Treasury Regulations.
• Cotlow v. Commissioner OF Internal Revenue
  228 F.2d 186· 2d Cir.· 1955-12-12 ·cited 12×
  The court held that receipts from assigned renewal commissions in excess of cost are taxable as ordinary income, not capital gains, and the cost of acquiring future commissions is a capital expenditure.
• Adeline Kirschenmann v. Westover
  225 F.2d 69· 9th Cir.· 1955-03-08 ·cited 12×
  The court held that the rental payment was not an ordinary and necessary business expense because it was not required as a condition to the continued use of the property for business purposes, but rather a contrivance for tax advantage.
• Andrews v. Commissioner of Internal Revenue
  179 F.2d 502· 4th Cir.· 1950-01-28 ·cited 12×
  The court held that living expenses incurred while maintaining a separate home elsewhere for personal reasons are not deductible as ordinary and necessary business expenses.
• Commissioner of Internal Revenue v. Lincoln Elec. Co.
  176 F.2d 815· 6th Cir.· 1949-08-29 ·cited 12×
  The dissenting judge believes the majority erred by imposing a reasonableness requirement not present in the statute for business expense deductions.
• Friedman v. Delaney
  171 F.2d 269· 1st Cir.· 1948-12-13 ·cited 12×
  The court held that the taxpayer's relinquishment of his claim to a $5000 deposit in 1941 was not an ordinary and necessary business expense, nor a deductible loss, as it was not related to fulfilling a professional commitment made in 1937.
• Heininger v. Commissioner of Internal Revenue
  133 F.2d 567· 7th Cir.· 1943-02-15 ·cited 12×
  Attorneys' fees and expenses incurred to defend a business against a fraud order, which allowed the business to continue operating and generating income, are deductible as ordinary and necessary business expenses.
• Commissioner of Internal Revenue v. Farmers & Ginners Cotton Oil Co.
  120 F.2d 772· 5th Cir.· 1941-06-09 ·cited 12×
  Losses from buying and selling refined oil futures contracts, entered into to offset unsatisfactory sales of crude oil, are capital losses, not ordinary business expenses or hedging losses.
• The Mason & Dixon Lines v. United States
  708 F.2d 1043· 6th Cir.· 1983-06-01 ·cited 10×
  Liquidated damages paid to Virginia for overweight vehicle violations are deductible as ordinary and necessary business expenses because they are compensatory in nature and not fines or penalties under I.R.C. § 162(f).
• Lettie Pate Whitehead Found., Inc. v. United States
  606 F.2d 534· 5th Cir.· 1979-11-13 ·cited 10×
  A private foundation cannot deduct a trustee's termination fee directly under I.R.C. § 4940(c)(3)(A) as it was an obligation of the trust, not the foundation, and not an expense for producing the foundation's investment income. Furthermore, unused trust deductions under I.R.C. §
• Roger Dolese & the Dolese Co. v. United States
  605 F.2d 1146· 10th Cir.· 1979-08-20 ·cited 10×
  The court held that litigation expenses paid by corporations were deductible only to the extent they originated from the corporations' profit-seeking activities, and that substantial personal living expenses paid by corporations to a shareholder constituted constructive dividends
• Nitzberg v. Commissioner OF Internal Revenue
  580 F.2d 357· 9th Cir.· 1978-08-14 ·cited 10×
  Losses from operating gambling tables, even if ordinary business expenses, are treated as wagering losses deductible only to the extent of gains under 26 U.S.C. § 165(d).
• Southland Royalty Co. v. The United States
  582 F.2d 604· Ct. Cl.· 1978-07-14 ·cited 10×
  Legal expenses incurred in litigation over the longevity of an oil and gas lease, where title was incidentally involved but the primary purpose was to determine the timing of income, are deductible as ordinary and necessary business expenses.
• Frank v. United States
  577 F.2d 93· 9th Cir.· 1978-06-19 ·cited 10×
  Expenses incurred by a public servant in the course of their duties are deductible as ordinary and necessary business expenses, even if not undertaken for profit, and the taxpayer's 'home' for tax purposes is a question of fact.
• Sam C. and Patricia L. Evans v. Commissioner OF Internal Revenue
  557 F.2d 1095· 5th Cir.· 1977-08-17 ·cited 10×
  The court held that a corporation formed for a valid business purpose, such as obtaining a loan at a higher interest rate, is a separate taxable entity, and its owner cannot claim deductions for its assets or losses. However, expenses incurred to repair a dam to maintain its oper