COMMISSIONER OF INTERNAL REVENUE
v.
WAYNE COAL MINING CO.; COMMISSIONER OF INTERNAL REVENUE V. HILLMAN COAL & COKE CO.
PER CURIAM.
We are asked to decide whether expenses incurred by a corporation in distributing its assets on liquidation are deductible under section 23(a) (1) (A) of the Internal Revenue Code, 26 U.S.C.A. § 23(a) (1) (A), as ordinary and necessary expenses of carrying on a trade or business. The Tax Court in a carefully considered opinion, allowed the deduction. The Commissioner has filed this petition for review.
A series of cases sustains the Tax Court’s conclusion. United States v. Arcade Co., 6 Cir., 1953, 203 F. 2d 230; Braicks v. Henricksen, D.C.W.D.Wash. 1942, 43 F.Supp. 254, affirmed on other grounds, 9 Cir., 1943, 137 F. 2d 632; Pacific Coast Biscuit Co. v. Commissioner, 1935, 32 B.T.A. 39; Laster v. Commissioner, 1940, 43 B.T.A. 159, affirmed in part and reversed in part on other grounds, 5 Cir., 1942, 128 F. 2d 4; Meurer Steel Barrel Co. v. Commissioner, 1 CCH TC Mem.Dec. 721 (1943), affirmed on other grounds, 3 Cir., 1944, 144 F. 2d 282, certiorari denied, 324 U.S. 860, 65 S.Ct. 864, 89 L.Ed. 1417, rehearing denied, 1945, 325 U.S. 892, 65 S.Ct. 1182, 89 L.Ed. 2004; Rite-Way Products, Inc. v. Commissioner, 1949, 12 T.C. 475. The only authority pointing to a contrary result is Motion Picture Capital Corp. v. Commissioner, 2 Cir., 1936, 80 F. 2d 872. Whether or not that case is distinguishable from the present situation, we see no reason to disturb the rule enunciated in the line of decisions above cited.
The judgment of the Tax Court will' be affirmed.
Cases With Similar Vibessemantic neighbors from the corpus
Citator
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Gravois Planing Mill Co. v. Commissioner OF Internal Revenue, 299 F.2d 199 (8th Cir. 1962)
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United States v. Morton, 387 F.2d 441 (8th Cir. 1968)
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United States v. Mountain States Mixed Feed Co., 365 F.2d 244 (10th Cir. 1966)
Previewing 3 of 7 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited
- Motion Picture Cap. Corp. v. Commissioner of Internal Revenue, 80 F.2d 872 (2d Cir. 1936)
- Meurer Steel Barrel Co., Inc. v. Commissioner of Internal Revenue, 324 U.S. 860 (U.S. 1946)
- Roodenko v. United States, 324 U.S. 860 (U.S. 1945)
- United States v. Arcade Co., 203 F.2d 230 (6th Cir. 1953)
- Compagna v. United States, 325 U.S. 892 (U.S. 1945)
- Kaufman v. United States, 325 U.S. 892 (U.S. 1945)
- Meurer Steel Barrel Co., Inc. v. Commissioner of Internal Revenue, 144 F.2d 282 (3d Cir. 1944)
- Laster v. Commissioner OF Internal Revenue (two cases), 128 F.2d 4 (5th Cir. 1942)
- Henricksen v. Braicks, 137 F.2d 632 (9th Cir. 1943)