Commissioner V. Lincoln Savings & Loan Assn. - 403 U.S. 345 (1971)

U.S. Supreme Court Commissi wizr v. Lincoln Savings & Loan Assn., 403 U.S. 345 (1971) Commissioner of internal revenue enhancement v. Lincoln Savings & Loan Assn. nary(prenominal) 544 Argued February 23, 1971 Decided June 14, 1971 403 U.S. 345 certiorari TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH enlistment Syllabus Payment by a state-chartered nest en and loan association of the excess premium compulsory by § 404(d) of the National Housing Act to be gainful to the federal official Savings and Loan insurance policy Corp. is not all(prenominal) last(predicate)owable for income tax purposes as an ordinary and necessary business outlay under § 162(a) of the interior(a) Revenue Code. Pp. 403 U. S. 352-359 422 F.2d 90, reversed. BLACKMUN, J., delivered the opinion of the Court, in which BURGER, C.J., and BLACK, HARLAN, BRENNAN, STEWART, WHITE, and MARSHALL, JJ., joined. DOUGLAS, J., filed a dissenting opinion, post, p. 403 U. S. 359. MR. JUSTICE BL ACKMUN delivered the opinion of the Court. This case presents the question whether the supernumerary premium paid in 1963 by a state-chartered nest egg and loan association to the Federal Savings and Loan redress Corporation under the compulsion of § 404(d) of the National Housing Act, as amended, 12 U.S.C. Page 403 U. S.

346 § 1727(d), [Footnote 1] is deductible by the association, for income tax purposes, as an ordinary and necessary business expense under § 162(a) of the Internal Revenue Code of 1954, 26 U.S.C. § 162(a). The Commissioner of Internal Revenue inflexible a deficiency of $461,454.38 in th e 1963 cash basis federal official income ta! x of Lincoln Savings and Loan Association. well all the deficiency was attributable to the disallowance of a deduction claimed for Lincolns defrayment of $882,636.86 make pursuant to § 404(d). Lincoln sought redetermination in the impose Court. attempt Raum, in a decision reviewed by the philander without dissent, upheld the deficiency. 51 T.C. 82 (1968). On appeal, the Ninth Circuit reversed, one come close dissenting. 422 F.2d 90 (1970). [Footnote 2]...If you want to get a full essay, holy order it on our website: OrderCustomPaper.com

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