TaxGuided
Supreme Court cases

Case detail

Deputy v. du Pont

308 U.S. 488 (1940)

Court

Supreme Court

Date

1940-01-02

Outcome

for-government

Holding

The claimed expenditures were not deductible as ordinary and necessary business expenses of the taxpayer's own business.

Facts

The taxpayer arranged transactions involving borrowed stock to assist a corporation and sought to deduct related carrying charges.

Reasoning

The Court focused on whether the expenses were ordinary in the relevant business and whether they truly arose from the taxpayer's own trade or business.

Case metadata

Jurisdiction: United States
Topics: ordinary and necessary, deductions
Statutes applied: 26 U.S.C. 162

Official opinion

Open official decision

Primary sources

Important disclaimer

This library is for general tax education only. Always verify filing obligations, due dates, and tax consequences against the cited primary source or with a qualified tax professional.