Smith v. Commissioner explained

Smith v. Commissioner
Court:	United States Board of Tax Appeals
Full Name:	Henry C. and Lillie M. Wright Smith v. Commissioner of Internal Revenue
Citations:	40 B.T.A. 1038
Judges:	Clarence V. Opper
Decision By:	Opper
Italic Title:	yes

Smith v. Commissioner, 40 B.T.A. 1038 (1939)^[1] is a United States tax case discussing the boundaries of tax deductibility.

HELD:

• Cost of hiring nursemaids to care for the infant child of a couple, both of whom are employed, not deductible as an ordinary and necessary business expense of the wife.

Academic commentary

The Smith decision demonstrates that it is the basic terms of existence of a person already at work that mark the boundary between business and personal expense.^[2]

Judgment

The following is a quotation from the body of the court's judgment:

Notes and References

1. Smith v. Commissioner . 40 . B.T.A. . 1038 . 1939 . https://scholar.google.com/scholar_case?case=9178391617176694271 . 2017-11-29 .
2. Book: Chirelstein, Marvin . Federal Income Taxation: A Law Student's Guide to the Leading Cases and Concepts. 2005 . Foundation Press . New York, NY . 978-1-58778-894-9 . Tenth . 107–109.