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Lykes v. United States, 343 U.S. 118 (1952)
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General SummaryThis case is from a collection containing the full text of over 16,000 Supreme Court cases from 1793 to the present. The body of Supreme Court decisions are, effectively, the final interpretation of the Constitution. Only an amendment to the Constitution can permanently overturn an interpretation and this has happened only four times in American history.
Lykes v. United States, 343 U.S. 118 (1952)
Lykes v. United States No. 173 Argued November 29-30, 1951 Decided March 24, 1952 343 U.S. 118
CERTIORARI TO THE UNITED STATES COURT OF APPEALS
FOR THE FIFTH CIRCUIT
Syllabus
Under § 23(a)(2) of the Internal Revenue Code, an individual taxpayer was not entitled to deduct from his gross income, for federal income tax purposes, an attorney’s fee paid for contesting the amount of his federal gift tax in the circumstances of this case. Pp. 119-127.
(a) The attorney’s fee was not deductible under § 23(a)(2) as an expense "for the production or collection of income." Pp. 121-124.
(b) There is no adequate basis in the record in this case for holding the attorney’s fee deductible under § 23(a)(2) as an incident of petitioner’s "management, conservation, or maintenance of property held for the production of income." Pp. 124-125.
(c) Expenses for legal services do not become deductible merely because they are paid for services which relieve a taxpayer of liability, nor because the size of the claim to which the services relate is large in proportion to the income-producing resources of the taxpayer, nor because the claim, if allowed, will consume income-producing property of the taxpayer. Pp. 125-126.
(d) The result here reached is not inconsistent with 1944 Treasury Regulations, and it is in accord with specific provisions of Treasury Regulations since 1946, containing an administrative interpretation of § 23(a)(2) which is entitled to substantial weight, especially since Congress has made many amendments to the Internal Revenue Code without revising that administrative interpretation. Pp. 126-127.
188 F.2d 964, affirmed.
In a suit for a refund of federal income tax, the District Court entered judgment for petitioner. 84 F.Supp. 537. The Court of Appeals reversed. 188 F.2d 964. This Court granted certiorari. 342 U.S. 810. Affirmed, p. 127.
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Chicago: U.S. Supreme Court, "Syllabus," Lykes v. United States, 343 U.S. 118 (1952) in 343 U.S. 118 343 U.S. 119. Original Sources, accessed November 22, 2024, http://originalsources.com/Document.aspx?DocID=PRMTA2NUZTNNW7F.
MLA: U.S. Supreme Court. "Syllabus." Lykes v. United States, 343 U.S. 118 (1952), in 343 U.S. 118, page 343 U.S. 119. Original Sources. 22 Nov. 2024. http://originalsources.com/Document.aspx?DocID=PRMTA2NUZTNNW7F.
Harvard: U.S. Supreme Court, 'Syllabus' in Lykes v. United States, 343 U.S. 118 (1952). cited in 1952, 343 U.S. 118, pp.343 U.S. 119. Original Sources, retrieved 22 November 2024, from http://originalsources.com/Document.aspx?DocID=PRMTA2NUZTNNW7F.
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