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McDonald v. Commissioner, 323 U.S. 57 (1944)

McDonald v. Commissioner of Internal Revenue

No. 36

Argued October 20, 1944

Decided November 20, 1944

323 U.S. 57


The judgment of the Circuit Court of Appeals affirming a decision of the Tax Court disallowing, in computing petitioner's income tax for 1939, a deduction of campaign expenses -- including an "assessment" by the political party of which he was a candidate -- incurred in contesting unsuccessfully an election for a judgeship which he had been holding temporarily by appointment, is affirmed.

Opinion of FRANKFURTER, J., in which STONE, C.J., and ROBERTS and JACKSON, JJ., concur:

1. Petitioner's campaign expenses were not deductible (1) under § 23(a)(1)(A) of the Internal Revenue Code as expenses incurred in "carrying on any trade or business;" (2) under § 23(e)(2) as a loss incurred in a "transaction entered into for profit;" nor (3) under § 23(a)(2) as expenses incurred "for the production or collection of income." P. 323 U. S. 60.

2. Under existing legislation, an incumbent, is no more than others, entitled to deduction of campaign expenses. P. 323 U. S. 63.

3. Affirmance of the decision of the Tax Court in this case is supported also by the rationale of Dobson v. Commissioner, 320 U. S. 489. P. 323 U. S. 64.

139 F.2d 400 affirmed.

Page 323 U. S. 58

Certiorari, 321 U.S. 762, to review the affirmance of a decision of the Tax Court, 1 T.C. 738, which sustained the Commissioner's determination of a deficiency in income tax.

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