Cohen v. Commissioner

Cohen v. Commissioner is a tax case where the issue revolved around whether a taxpayer could deduct personal legal expenses related to a divorce from their taxable income. The court ultimately ruled that such expenses were not deductible because they were personal in nature, not directly tied to generating income. This case highlights the distinction between personal and business expenses in tax law, emphasizing that individuals cannot reduce their taxable income by expenses that are deemed personal rather than tied to investments or business activities.