Sanderson v. Commissioner

Decided May 18, 1931

United States Board of Tax Appeals · decided 1931-05-18

Amounts paid by petitioner to his attorneys for services rendered and expenses incurred in connection with demands made on behalf of his divorced wife for an accounting of the administration of her financial affairs during marriage, which were handled through accounts with a partnership of which petitioner was a member, and over which petitioner exercised control only with her advice and cooperation, are held to have been related directly to petitioner's marital situation…

Cited by 1 later decisions — most recently October 1949

Relies on Kornhauser v. United States

Good law ✅— No negative treatment on recordhow we know

Decided 1931-05-18

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¶1 *306OFINION.

Sternhagen :

¶2The- respondent determined that the amount of $37,562.63 paid to petitioner’s attorneys in 1925 was not deductible *307because it was “ a personal expense within the meaning of section 215 of the Revenue Act of 1926.” The petitioner contends that the amount was deductible “ as an ordinary and necessary business expense under the provisions of section 214 (a) (1),” and cites principally Kornhauser v. United States, 276 U. S. 145. We are of opinion that the respondent has treated the item correctly. It was related directly to petitioner’s marital situation and only remotely and incidentally involved his business or that of Barney & Company.

¶3Judgment will he entered for the respondent.