Abbott v. Commissioner

Board of Tax Appeals

Abbott v. Commissioner

38 B.T.A. 1290, 1938 BTA LEXIS 757

CourtUnited States Board of Tax Appeals

DecidedDecember 6, 1938

DocketDocket No. 91141.

StatusPublished

Cited by6 cases

This text of 38 B.T.A. 1290 (Abbott v. Commissioner) is published on Counsel Stack Legal Research, covering United States Board of Tax Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Abbott v. Commissioner, 38 B.T.A. 1290, 1938 BTA LEXIS 757 (bta 1938).

Pincite

Opinion

[1292]*1292OPINION.

Sternhagen :

From the findings, which are substantially a narrative of the evidence, it is beyond doubt that the petitioner’s regular business included serving for pay as a trustee and as an executor. In the course of this business and as an incident thereof he was required to pay $10,000 as a liability growing out of the conduct of the business. Clearly such circumstances of the payment support its deduction, and it should have been allowed. Kornhauser v. United States, 276 U. S. 145. Respondent cites Stuart v. Commissioner, 84 Fed. (2d) 368, and Stephen H. Tallman, 37 B. T. A. 1060, to support the dis-allowance ; but in both, the ground of the disallowance was that the particular occasion for the taxpayer’s payment was liability in an isolated fiduciary activity which was not itself or incidental to a trade or business regularly carried on. They are, therefore, unlike this case and distinguishable from it in crucial facts.

Since this item of deduction is the only adjustment upon which the deficiency rests, the determination is reversed.

Decision will be entered for the petitioner.

Free access — add to your briefcase to read the full text and ask questions with AI

[1292]*1292OPINION.

Sternhagen :

From the findings, which are substantially a narrative of the evidence, it is beyond doubt that the petitioner’s regular business included serving for pay as a trustee and as an executor. In the course of this business and as an incident thereof he was required to pay $10,000 as a liability growing out of the conduct of the business. Clearly such circumstances of the payment support its deduction, and it should have been allowed. Kornhauser v. United States, 276 U. S. 145. Respondent cites Stuart v. Commissioner, 84 Fed. (2d) 368, and Stephen H. Tallman, 37 B. T. A. 1060, to support the dis-allowance ; but in both, the ground of the disallowance was that the particular occasion for the taxpayer’s payment was liability in an isolated fiduciary activity which was not itself or incidental to a trade or business regularly carried on. They are, therefore, unlike this case and distinguishable from it in crucial facts.

Since this item of deduction is the only adjustment upon which the deficiency rests, the determination is reversed.

Decision will be entered for the petitioner.

Cite This Page — Counsel Stack

Bluebook (online)

38 B.T.A. 1290, 1938 BTA LEXIS 757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abbott-v-commissioner-bta-1938.

Opinion

Related

Cite This Page — Counsel Stack