United States v. Gilmore

Mr. Gilmore (plaintiff) owned a franchised automobile dealership. In his divorce, his wife claimed a community-property interest in the dealership, and if she had won, Gilmore might have lost the franchise and its income. Gilmore deducted the legal fees he spent defending against her property claim under § 212 of the tax code. The IRS Commissioner (defendant) determined the fees were personal, not business, expenses and disallowed the deduction. Gilmore paid the resulting assessment and sued for a refund in the Court of Claims, which ruled in his favor, and the Supreme Court granted certiorari.