Charles Schneider & Co. v. Commissioner
United States Tax Court
1. Based on all the facts presented, compensation paid by the petitioners to certain officers was unreasonable and excessive. Held: Reasonable compensation determined. 2. Petitioner Future Foam, a corporation, purchased stock in a corporation which it hoped would serve as a distributor for its inventory. Future Foam later sold the stock without gain or loss but evidenced by a note. Several years after the sale, and without any payment, the note became worthless.
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1. Based on all the facts presented, compensation paid by the petitioners to certain officers was unreasonable and excessive. Held: Reasonable compensation determined. 2. Petitioner Future Foam, a corporation, purchased stock in a corporation which it hoped would serve as a distributor for its inventory. Future Foam later sold the stock without gain or loss but evidenced by a note. Several years after the sale, and without any payment, the note became worthless. Held: Future Foam is entitled to an ordinary bad debt loss pursuant to section 166(a). 3. Charles, Inc. and its wholly owned…
1Opinion of the Court
CHARLES SCHNEIDER & CO., INC., an Iowa Corporation, ET AL., 1 Petitioners v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Charles Schneider & Co. v. Commissioner
Docket Nos. 7740-70, 7741-70, 7743-70, 7744-70, 7745-70
United States Tax Court
T.C. Memo 1973-130; 1973 Tax Ct. Memo LEXIS 156; 32 T.C.M. (CCH) 555; T.C.M. (RIA) 73130;
June 18, 1973, Filed
1. Based on all the facts presented, compensation paid by the petitioners to certain officers was unreasonable and excessive. Held: Reasonable compensation determined.
2. Petitioner Future Foam, a corporation, purchased stock in a corporation which it…
2Cases cited26 opinions
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- Botany Worsted Mills v. United StatesSupreme Court of the United States · 1929
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Spring City Foundry Co. v. CommissionerSupreme Court of the United States · 1934
- National Carbide Corp. v. CommissionerSupreme Court of the United States · 1949
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