Maloney Electric Co. v. Commissioner
United States Board of Tax Appeals
1. The amount paid by petitioner to induce a solvent bank to assume the liabilities of another, under the same circumstances as those existing in Robert Gaylord, Inc.,41 B.T.A. 1119, held, following that case to be deductible as ordinary and necessary expenses of carrying on its business, the evidence indicating that such payment was made to preserve, protect and promote petitioner's busness. 2. Contract between petitioner and its creditor executed prior to May 1, 1936,…
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1. The amount paid by petitioner to induce a solvent bank to assume the liabilities of another, under the same circumstances as those existing in Robert Gaylord, Inc.,41 B.T.A. 1119, held, following that case to be deductible as ordinary and necessary expenses of carrying on its business, the evidence indicating that such payment was made to preserve, protect and promote petitioner's busness. 2. Contract between petitioner and its creditor executed prior to May 1, 1936, required that 20 percent of its net earnings in excess of $320,000 for the next preceding year, on the first day of June of…
1Opinion of the Court
MOLONEY ELECTRIC COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
Maloney Electric Co. v. Commissioner
Docket No. 96076.
United States Board of Tax Appeals
42 B.T.A. 78; 1940 BTA LEXIS 1058;
June 13, 1940, Promulgated
1. The amount paid by petitioner to induce a solvent bank to assume the liabilities of another, under the same circumstances as those existing in Robert Gaylord, Inc.,41 B.T.A. 1119, held, following that case to be deductible as ordinary and necessary expenses of carrying on its business, the evidence indicating that such payment was made to preserve, protect and…
2Cases cited3 opinions
- Gaylord v. CommissionerUnited States Board of Tax Appeals · 1940
- Michigan Silica Co. v. CommissionerUnited States Board of Tax Appeals · 1940
- Maloney Electric Co. v. CommissionerUnited States Board of Tax Appeals · 1940