payment to cancel unfavorable agency contract deductible as ordinary and necessary expense to prevent loss of earnings
How later courts described this case
- payment to cancel unfavorable agency contract deductible as ordinary and necessary expense to prevent loss of earnings
- "It has long been a rule that the consideration paid for the termination or cancellation of a lease by the lessee is deductible in full by him as an ordinary and necessary expense for the year in which the expense is paid or incurred."
Written by the judges who cited it.
The opinion
Black,
concurring: I concur in the result reached, but I do not agree with that part of the majority opinion which holds that the case of Robert J. Boudreau, 45 B. T. A. 390, is distinguishable on its facts.
I dissented in the Boudreau case. The essence of my dissent was that contracts which provide for future payments contingent upon indeterminable events which may never occur should not be treated as income when entered into, even though they do have a definite ascertainable fair market value. I am still of the same opinion as expressed in that dissent and, therefore, concur in the result reached by the majority opinion herein.