Turner v. Commissioner
United States Tax Court
Certain bonus payments comprising a percentage of the net profits of the business were not ascertained until some five months after the end of the taxable year and the amounts thereof were not at any time during the taxable year available to the payees by the mere taking. Held, there is no constructive receipt by the payees and section 24 (c) of the Internal Revenue Code applies to preclude deduction thereof by petitioner in the taxable year.
1Opinion of the Court
OPINION.
Arundell, Judge-.
This proceeding poses the question of whether the bonus payments made by petitioner to his daughters are to be disallowed as business expense deductions in the taxable year. The respondent disallowed the deductions by reason of section 24 (c) of the Internal Revenue Code.1 That statute operates to preclude deduction for accrued business expenses where the three conditions to its application coexist. Michael Flynn Mfg. Co., 3 T. C. 932, and cases cited therein.
The bonuses in question were not paid within the taxable year or within two and one-half months after the…
2Cases cited2 opinions
- Michael Flynn Mfg. Co. v. CommissionerUnited States Tax Court · 1944
- P. G. Lake, Inc. v. CommissionerUnited States Tax Court · 1944
3Cited by15 opinions
- Platt Trailer Co. v. CommissionerUnited States Tax Court · 1955
- Anthony P. Miller, Inc. v. CommissionerUnited States Tax Court · 1946
- Jerome Castree Interiors, Inc. v. CommissionerUnited States Tax Court · 1975
- Wooten v. CommissionerUnited States Tax Court · 1949
- Harrington Co. v. CommissionerUnited States Tax Court · 1946
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