BENEDICT OIL CO. v. UNITED STATES

No. 76-1868.

582 F.2d 544 (1978)

BENEDICT OIL COMPANY, a Delaware Corporation and Benedict I. Lubell, as Trustee of the Jeanette and Samuel Lubell Foundation, Norma R. Lubell and First National Bank and Trust Company of Tulsa, as Co-Trustees of the Trust for the Benefit of Ann Lubell Margolis, Norma R. Lubell and the First National Bank and Trust Company of Tulsa, as Co-Trustees of the Trust for the Benefit of John David Lubell, Benedict I. Lubell, Grace L. Brandt, Shirley L. Black, John David Lubell, Jan Borgenicht Schwartz, Berta Borgenicht Kerr, Lois Borgenicht, Leon David Black, Judith Ellen Black Nadler, Ann Lubell Margolis, M. Robert Gallop, as Trustees of the Trust for the Benefit of Leon David Black, and M. Robert Gallop, as Trustee of the Trust for the Benefit of Judith Ellen Black Nadler, Plaintiffs-Appellees, v. UNITED STATES of America, Defendant-Appellant.

United States Court of Appeals, Tenth Circuit.

Decided August 17, 1978.


Attorney(s) appearing for the Case

David English Carmack, Washington, D.C. (Scott P. Crampton, Asst. Atty. Gen., Myron C. Baum, Acting Asst. Atty. Gen., Gilbert E. Andrews and Leonard J. Henske, Jr., Attys. Tax Division, Dept. of Justice, Washington, D.C., with him on briefs), for defendant-appellant.

Robert L. McGowen, Tulsa, Okl. (J. Denny Moffett, Tulsa, Okl., with him on brief), for plaintiffs-appellees.

Before SETH, Chief Judge, and HOLLOWAY, McWILLIAMS, BARRETT, DOYLE, McKAY and LOGAN, Circuit Judges (en banc).


LOGAN, Circuit Judge.

This appeal is by the United States from a district court decision which held that certain costs incurred by Benedict Oil Company (Benedict or taxpayer) in a corporate liquidation under Section 337 of the Internal Revenue Code of 1954 (IRC) may be deducted as ordinary and necessary business expenses. The government contends that these costs must be offset against the gain from the sale of the assets and asks that we overrule our decision in ...

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