Cammarano v. United States
Encyclopedia
Cammarano v. United States, 358 U.S. 498 (1959), was a case in which the Supreme Court of the United States
ruled that business may not deduct
expenses they incurred for the "promotion or defeat of legislation
" as "ordinary and necessary" business
expenses on their federal income tax filing.
Supreme Court of the United States
The Supreme Court of the United States is the highest court in the United States. It has ultimate appellate jurisdiction over all state and federal courts, and original jurisdiction over a small range of cases...
ruled that business may not deduct
Tax deduction
Income tax systems generally allow a tax deduction, i.e., a reduction of the income subject to tax, for various items, especially expenses incurred to produce income. Often these deductions are subject to limitations or conditions...
expenses they incurred for the "promotion or defeat of legislation
Legislation
Legislation is law which has been promulgated by a legislature or other governing body, or the process of making it...
" as "ordinary and necessary" business
Business
A business is an organization engaged in the trade of goods, services, or both to consumers. Businesses are predominant in capitalist economies, where most of them are privately owned and administered to earn profit to increase the wealth of their owners. Businesses may also be not-for-profit...
expenses on their federal income tax filing.