Vaughan v. Commissioner
United States Board of Tax Appeals
1. From January 1 to March 18, 1929, inclusive, the petitioner, as sole proprietor, conducted a stock brokerage business under the name of Vaughan & Co. On March 19, 1929, the petitioner entered into a profit-sharing agreement with two former employees under which they were to receive 40 percent of the profits and the petitioner 60 percent. The petitioner furnished all the capital.
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1. From January 1 to March 18, 1929, inclusive, the petitioner, as sole proprietor, conducted a stock brokerage business under the name of Vaughan & Co. On March 19, 1929, the petitioner entered into a profit-sharing agreement with two former employees under which they were to receive 40 percent of the profits and the petitioner 60 percent. The petitioner furnished all the capital. The agreement provided that the two former employees should not contribute to the losses except out of the profits. Held, that the petitioner is entitled to deduct from his gross income of 1929 the total loss of…
1Opinion of the Court
WILLIAM W. VAUGHAN, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Vaughan v. Commissioner
Docket No. 67843.
United States Board of Tax Appeals
31 B.T.A. 548; 1934 BTA LEXIS 1071;
November 8, 1934, Promulgated
1. From January 1 to March 18, 1929, inclusive, the petitioner, as sole proprietor, conducted a stock brokerage business under the name of Vaughan & Co. On March 19, 1929, the petitioner entered into a profit-sharing agreement with two former employees under which they were to receive 40 percent of the profits and the petitioner 60 percent. The petitioner furnished all the…
2Cases cited1 opinion
- Vaughan v. CommissionerUnited States Board of Tax Appeals · 1934