McDonald v. Commissioner
Annotate this Case
323 U.S. 57 (1944)
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U.S. Supreme Court
McDonald v. Commissioner, 323 U.S. 57 (1944)
McDonald v. Commissioner of Internal Revenue
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.
139 F.2d 400 affirmed.
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.