Legal Thought Of The Day, No. 3

Friday, November 09, 2007

Legal Thought of the Day, No 3.
Category: Movies, TV, Celebrities

“14. We close with the following ‘Ode to Conway Twitty’:

Twitty Burger went belly up
But Conway remained true
He repaid his investors, one and all
It was the moral thing to do

His Fans would not have liked it
It could have hurt his fame
Had any investors sued him
Like Merle Haggard or Sonny James

When it was time to file taxes
Conway thought what he would do
Was deduct those payments as a business expense
Under section one-sixty-two.

In order to allow these deductions
Goes the argument of the Commissioner
The payments must be ordinary and necessary
To a business of the petitioner.

Had Conway not repaid the investors
His career would have been under a cloud,
Under the unique facts of this case
Held: The deductions are allowed.”

~Judge Irwin, Jenkins v. Commissioner, T.C. Memo 1983-667, n.14
United States Tax Court, 1983.

For More info, and the IRS’s “Ode to Conway Twitty: A Reprise”, see: http://taxprof.typepad.com/taxprof_blog/2006/09/tax_and_twitty_.html

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1:34 AM – 3 Comments – 4 Kudos – Add CommentEditRemove
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dude… WTF?? The judge wrote this? That “rulz”.

Posted by The Dog & Pony Show on Friday, November 09, 2007 at 2:25 PM
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you weren’t the one who got the menu for $102, were you?

Posted by J’Nette on Thursday, December 06, 2007 at 11:22 AM
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No.

Posted by Tim on Friday, December 07, 2007 at 2:27 AM
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