Bauer Bros. v. Commissioner’s Empirical Analysis

Citation profile

18 federal appellate · 2 district · 3 state decisions

Most-quoted passages

The sentences later courts lift from this opinion, ranked by how many decisions quote each — the parts of the opinion doing the work. These counts are smaller than the citation total above because most of the 36 citing decisions cite the case generally; a passage count includes only decisions quoting that exact language verbatim.

1. “* * * [T]he only question presented is whether they were incurred in 1918 within the meaning of the statute. Our first concern is with the sense in which the term “incurred” is used in section 234. It seems not to be disputed here that expenses are incurred only when there is an agreement or a legal obligation to pay them within the taxable year. Indeed, that seems to be the view taken of the very language of this section by the Supreme Court of the United States in Lucas, Commissioner of Internal Revenue v. Ox Fibre Brush Co., 281 U.S. 115 , 50 S.Ct. 273 , 74 L.Ed. 773 . It will therefore be observed that, whether the term “incurred” as used in the Revenue Act of 1918 is used in a technical legal sense or in an economic or bookkeeping sense, the expenses are not incurred unless there has arisen a legal obligation to pay them, and they do not accrue within a given taxable year unless all of the events which fix the amount and determine the liability of the taxpayer to pay occur within that year. * * * [Id. at 875-76.] [Emphasis supplied.]”

   2 later decisions quote this exact passage · from the majority
   e.g. Eastman Kodak Co. v. United States · Cravens v. Commissioner

2. “all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business”

   1 later decision quote this exact passage · from the majority
   e.g. Shiocton Lumber Co. v. Commissioner