United Draperies, Inc. v. Commissioner
United States Tax Court
1. Held, rebates paid by petitioner to certain employees of its customers are not deductible under section 162, I.R.C. 1954. 2. Held, further, the amounts of these rebates are includable in gross income under section 61(a), I.R.C. 1954. 3. Held, further, amounts paid by petitioner primarily for property transfers to employees of its customers are not deductible under section 162, I.R.C. 1954.
1Opinion of the Court
OPINION
The first issue is whether the amounts paid by petitioner to Conte, Eckstein, and Bergner pursuant to its agreement to pay them a fixed percentage of its collections from their respective employers are deductible as ordinary and necessary business expenses under section 162 of the Internal Revenue Code of 1954.1
Section 162 (a) provides:
SEC. 162. TRADE OR BUSINESS EXPENSES.(a) In Geneeal. — There shall be allowed as a deduction all the ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including—(1) a reasonable allowance for…
2Cases cited7 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Cammarano v. United StatesSupreme Court of the United States · 1959
- Tank Truck Rentals, Inc. v. CommissionerSupreme Court of the United States · 1958
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3Cited by22 opinions
- Diamond v. CommissionerUnited States Tax Court · 1971
- V. H. Monette & Co. v. CommissionerUnited States Tax Court · 1965
- Frederick Steel Co. v. CommissionerUnited States Tax Court · 1964
- United Draperies, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1965
- Schiffman v. CommissionerUnited States Tax Court · 1967
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