Deduction

“ As a matter of practice and advisability, the illegal method of deduction, although it overrides the servant's rights, is better for her, as it saves her the expense of a lawsuit merely for a principle. The wise cook will not grumble at it. ”

“ In assessing the plaintiff's damages, deduction should, of course, be made of any sum that the plaintiff might have earned in the past or might earn in the future, as well as the amount of any loss that the defendant had sustained by the lose of the plaintiff's services without the defendant's fault. ”

“ It is urged that want of due process results from the provision allowing individuals to deduct from their gross income dividends paid them by corporations whose incomes are taxed, and not giving such right of deduction to corporations.
5. Want of due process is also asserted to result from the fact that the act allows a deduction of $3,000 or $4,000 to those who pay the normal tax, that is, whose incomes are $20,000 or less, and does not allow the deduction to those whose incomes are greater than $20,000 ”

“ In our view the payments made as a result of the testator's assumption of responsibility both for his wife's share of the community debts and for her share of the administration expenses are more properly characterized as material gifts rather than as 'claims' or 'expenses.' Since these gifts were to the surviving spouse, respondents contend that a marital deduction should be allowed. ”

“ Whether a deduction from gross income shall be permitted for depletion of mineral deposits, or any interest therein, is entirely a matter of grace. [5] We therefore must look, first to the provisions and purposes of the statutes and to the decisions construing them to see what interests are permitted a deduction for depletion, and, next, to the contracts involved to see whether they gave to petitioners such an interest. ”

“ Thus, where money or property is placed in trust to pay the income to an individual during life, and then to pay or deliver the same to a charitable corporation, or apply the principal to a charitable purpose, the charitable bequest or devise forms the basis for a deduction. The amount of the deduction, in such case, is the value, at the date of the decedent's death, of the remainder interest in the money or property which is devised or bequeathed to charity. ”

“ The regulation, therefore, both effectively nullifies a privilege which Congress provided the taxpayer shall have and reaches farther than any reasonable recouping provision should go. It is no answer to say deduction is a privilege which Congress need not have extended, or having extended can qualify out of existence. ”

“ The inequities of treating an amount as income which eventually turns out not to be income are urged upon us. The Government concedes that each of these taxpayers is entitled to a deduction for a loss in the year of repayment of the amount earlier included in income. ”

“ Here, in 1923, on the winding up, the debt that then remained unpaid, after deducting the dividends received, was ascertained to be worthless and the Commissioner allowed deduction accordingly in that year.
3. Petitioner also claims the right of deduction under section 234 (a) (4) of the Revenue Act of 1918 providing for the deduction of 'losses sustained during the taxable year and not compensated for by insurance or otherwise.' We agree with the decision below that this subdivision and the following subdivision (5) relating to debts are mutually exclusive. ”

“ In deduction the law is given, and the effects are required to be found; that is a comparatively easy task in which you will readily excel. But in induction, on the contrary, the effects are given and the law is required to be found ; that is a hard task, in which you often fail, but in which you must, and will, learn to excel. ”

“ The Circuit Court of Appeals states that there is no evidence of double deduction or any specific instance of such deduction. But that absence of proof does not support the judgment. Respondent had the affirmative of the issue, and the burden was on it to show that allowance of the deduction claimed would not amount to twice subtracting the same loss. That is an essential fact which cannot be assumed. Respondent may not rely on mere assertion or speculation. ”

“ The function of the allowance for depletion as a means of securing to the taxpayer a credit against gross income for so much of his capital investment as is restored from the income does not differ from that for depreciation or obsolescence when allowed as a deduction. ”

“ It was there said:↑ 'Conditional bequests.-Where the bequest, legacy, devise, or gift is dependent upon the performance of some act, or the happening of some event, in order to become effective it is necessary that the performance of the act or the occurrence of the event shall have taken place before the deduction can be allowed. Where, by the terms of the bequest, devise or gift, it is subject to be defeated by a subsequent act or event, no deduction will be allowed.' Treas.Reg. ”

“ Commissioner, 218 F.2d 697, 699, the Tenth Circuit rejected the Commissioner's reliance on the claim of right rationale and found that the deferment of advances in accord with accrual principles did 'clearly reflect * * * income' under § 41. At about the same time a Ninth Circuit decision permitted income received from the sale of goods to be offset by a deduction for the future expense of shipping the goods. ”

“ The standard deduction will increase sharply, and the personal exemption-that's the amount of money you get to deduct for yourself and each one of your dependents-will almost double, rising to $2,000 in 1989. ”

“ The provision of section 245 is that there shall be deducted from the gross income:
' (2) An amount equal to the excess, if any, over the deduction specified in paragraph (1) of this subdivision (i. e., the interest on tax-exempt securities) , of 4 per centum of the mean of the reserve funds required by law.' (Comp. St. § 6336 1/8 t (4) (a2) ) . ”

“ PAYROLL DEDUCTION- An amount equal to the monthly premium for the enrollment in the CLASS program of an individual shall be deducted from the wages or self-employment income of such individual in accordance with such procedures as the Secretary, in coordination with the Secretary of the Treasury, shall establish for employers who elect to deduct and withhold such premiums on behalf of enrolled employees. ”

“ Since § 26 (c) (2) grants a special credit in the nature of a deduction, the taxpayer must sustain the burden of showing compliance with its exact terms. Helvering v. Northwest Steel Rolling Mills, 311 U.S. 46, 49, 61 S.Ct. ”

“ The point of the statutory language is to entitle debtors who own cars to an ownership deduction, and I have little doubt that debtors will be able to choose correctly whether to claim a deduction for one car or for two. ”

“ It is a question of fact in each case whether a donation is made to an institution conducted for the benefit of the donor's employees or is consideration for a benefit flowing directly to the donor as an incident of its business. Here the ruling of the Commissioner, that the deduction was not permissible under the statute and regulations, presumably rests upon a correct determination of the facts. ”

“ Any person who has been deemed to have made a deduction from interest payable to another person under the provisions of section 30, may retain out of any assets of such other person coming into his possession or control, so much thereof as shall be sufficient to produce the amount of such deduction, and he shall be and is hereby indemnified against any person whomsoever in respect of his retention of such assets ”

“ It was given to secure respondent's promise to pay, and if that promise to pay was not sufficient to warrant the deduction until the promise was made good by actual payment, the giving of security for performance did not transform the promise into the payment required to constitute a deductible loss in the taxable year. ”

“ Had the deduction been allowed, there would have been no taxable net income for that year, and no part of the $165,075.78 would have been collectible. Payment of that sum, as so assessed, was pressed on the executors, and they paid it under duress. ”

“ Representative Hill, chairman of a House subcommittee on the income-tax laws, explained to the House with reference to the 1934 provisions that the Committee had 'provided in this bill that transfers between members of the family for the purposes of creating a loss to be offset against ordinary income shall not be recognized for such deduction purposes.' 78 Cong.Rec. ”

“ Whenever under this Act or any Act of Congress, or under the law of any State, an employer is required or permitted to deduct any amount from the remuneration of an employee and to pay the amount deducted to the United States, a State, or any political subdivision thereof, then for the purposes of this Act the amount so deducted shall be considered to have been paid to the employee at the time of such deduction. ”

“ A deduction is allowed for depreciation by § 23 (l) which permits a 'reasonable allowance for the exhaustion, wear and tear of property used in the trade or business.' 26 U.S.C.A. Int.Rev.Acts, page 1014. And see Treasury Regulations 101, Art. ”

“ Section 162 (a) provides: "There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business. . . ." 26 U.S.C. § 162 (a) . ”

“ The Code initially defines a debtor's disposable income as his "current monthly income . . . less amounts reasonably necessary to be expended." §1325 (b) (2) (emphasis added) . The statute then instructs that " [a] mounts reasonably necessary to be expended . . . shall be determined in accordance with" the means test. §1325 (b) (3) . Because Congress intended the means test to approximate the debtor's reasonable expenditures on essential items, a debtor should be required to qualify for a deduction by actually incurring an expense in the relevant category. ”

“ The modern use of deduction is practically identical with the Aristotelian συλλογισμός.
↑ Two forms of the verb are used, “deduce” and “deduct”; originally synonymous, they are now distinguished, “deduce” being confined to arguments, “deduct” to quantities. ”

“ Helvering, 5 Cir., 111 F.2d 229, 231. Nor do we consider whether the gifts to the beneficiaries here are of future interests which are excepted from the benefit of the $5,000 deduction allowed by § 504 (b) . ”

“ Certain individuals, etc., not eligible for standard deduction In the case of— (A) a married individual filing a separate return where either spouse itemizes deductions, (B) a nonresident alien individual, (C) an individual making a return under section 443 (a) (1) for a period of less than 12 months on account of a change in his annual accounting period, or (D) an estate or trust, common trust fund, or partnership, the standard deduction shall be zero. ”

“ That the deductions should be from the whole and not from a part only of the laws of nature that are concerned, would be desirable even if those omitted were so insignificant in comparison with the others, that they might, for most purposes and on most occasions, be left out of the account. ”

“ There shall be a deduction, moreover, of four per cent, under the title of allowance for good weight, eight pounds weight per hogshead for samples, and two per cent discount on the amount of the invoice for prompt payment. ”

“ The bequest was probably intended not to take effect till after the death of your mother and myself; nevertheless, as the will is actually worded, it will now be at your command if you live to be twenty-one years old. From this, however, large deductions must be made. There will be legacy duty, and I do not know whether I am not entitled to deduct the expenses of your education and maintenance from birth to your coming of age ”

“ The deduction was disallowed by the Commissioner, by the Board of Tax Appeals and, in review, by the Circuit Court of Appeals for the Second Circuit. 42 F. (2d) 158. A writ of certiorari was allowed by this Court. 282 U.S. 826, 51 S.C.t. 76. 75 L. Ed. -. ”

“ As a result, the depletion allowance increases in years when disputed amounts are received under claim of right; there is no corresponding decrease in the allowance because of later deductions for repayments. ”

“ No judge is required to pay a definite percentage of his salary, but all are commanded to return, as a part of 'gross income,' 'the compensation received as such' from the United States. From the 'gross income' various deductions and credits are allowed, as for interest paid, contributions or gifts made, personal exemptions varying with family relations, etc., and upon the net result assessment is made. ”

“ If you give the figures you must stand by the figures, and you are bound by them. You cannot charge one thing and prove something else. This is a fatal variance.
In addition to this fact, we find the deductions for failures in that very quarter amounted to five hundred and forty dollars and forty-two cents, and this deducted from the other amount leaves two thousand, two hundred and eleven dollars and seventy-two cents. ”

“ In cases, therefore, in which the husband or wife has allowable deductions in excess of his or her gross income, such excess may, if joint return is filed, be deducted from the net income of the other for the purpose of computing both the normal and surtax'. ”

“ The deductions allowable under section 234 represent expenses paid or accrued or losses suffered during the same taxable year covered by the return. They are thus included in the net income according to the fundamental concept of such income reflected in the statute, instead of falling within an exception which, irrespective of its precise extension, is a departure from the general scheme. ”

“ It is true that some courts have followed this path, [5] but it is difficult to accept an approach which would allow a deduction of $42,000 on the facts of this case, a deduction of $72,000 if the order had been entered at the end of two years from Mr. ”