J. W. Sefton, Jr. v. Commissioner of Internal Revenue
Opinion
Opinion
Barnes, J.
Petitioner sought to redetermine an income tax deficiency assessed against him for the year 1953 in the sum of $14,214.19. This deficiency arose from the disallowance by the Commissioner of two items taxpayer claimed deductible; namely: (1) $39,533.49 allegedly paid by him as interest during 1953 ; and (2) $8,037.06 paid by him as attorneys’ fees and costs in certain litigation during 1953.
In 1949 petitioner’s wife had sued him to recover $242,229.82 (hereinafter referred to as Item 3) alleged to be profits from sales of stock allegedly owned by her; (Item 4) $4,116.60 in dividends received by him and allegedly belonging to her; (Item 5) $20,009.30 in moneys allegedly borrowed from her; (Item 6) $42,694.85 allegedly spent by her for her maintenance; (Item 7) $5,-378.61 allegedly due her as interest; (Item 8) $100,000 exemplary damages; (Item 9) 214 shares of stock of Container Corporation stock; (Item 10) 100 shares of stock of Western Investment Company stock; (Item 11) an undisclosed amount, representing interest at seven per cent on all sums due the wife.
Petitioner cross-complained for (Item 12) $20,000; and (Item 13) 513 shares of Container Corporation stock.