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 decisionPrimary sources
- Official opinion PDFVerified 2026-05-01
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