From our private database of 26,900+ case briefs...
Welch v. Helvering
United States Supreme Court
290 U.S. 111 (1933)
E.L. Welch Company was a corporation involved in the grain business. Welch (plaintiff) served as the secretary of the corporation before it went bankrupt and was discharged from its debts. Welch was subsequently hired as a commission agent for Kellogg Company, a corporation also in the grain business. In an effort to reconnect with old customers he had known through the E.L. Welch Company, and to strengthen his credit and reputation, Welch substantially repaid E.L. Welch’s debts. On his tax return for those years, Welch deducted the amount of these repayments as business expenses. The Commissioner determined that the repayments were not necessary and ordinary expenses, but rather capital outlay for the purpose of developing his reputation and good will. The Board of Tax Appeals held for the Commissioner. The Court of Appeals affirmed.
Rule of Law
Holding and Reasoning (Cardozo, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 541,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.Unlock this case briefRead our student testimonials
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.Learn about our approachRead more about Quimbee
Here's why 541,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 26,900 briefs, keyed to 983 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.