Brandtjen & Kluge, Inc. v. Commissioner
United States Tax Court
1. Held: On the facts, that the salary paid by petitioner to Henry A. Brandtjen, Jr., in the years 1953, 1954, and 1955 was in excess of a reasonable allowance for salary or compensation for the personal services actually rendered by him.
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1. Held: On the facts, that the salary paid by petitioner to Henry A. Brandtjen, Jr., in the years 1953, 1954, and 1955 was in excess of a reasonable allowance for salary or compensation for the personal services actually rendered by him. The amount representing such reasonable amount determined. 2. Petitioner in 1954 and 1955 concluded that its accounts receivable from its Canadian subsidiary were partially worthless and took steps which were designed and intended to charge off on its books worthless portions of such indebtedness. Held, that the entries made on its books with respect to such…
1Opinion of the Court
OPINION.
TURNER, Judge:
Under section 23(a)(1)(A) of the Internal Revenue Code of 1939 and section 162(a) (1) of the Internal Revenue Code of 1954, it is provided that deductions are to be allowed for all ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including “a reasonable allowance for salaries or other compensation for personal services actually rendered.”
The petitioner, on its returns for 1953, 1954, and 1955, claimed deductions of $13,532.24, $25,090.56, and $20,908.80, being the full amounts paid by it as compensation to…
2Cases cited6 opinions
- Poe v. SeabornSupreme Court of the United States · 1930
- Wilbur Sec. Co. v. CommissionerUnited States Tax Court · 1959
- Berkshire Oil Co. v. CommissionerUnited States Tax Court · 1947
- Hamlen v. WelchCourt of Appeals for the First Circuit · 1940
- Nippert v. CommissionerUnited States Board of Tax Appeals · 1935
1 more not listed; retrieve them via the Exa API.
3Cited by3 opinions
- Brandtjen & Kluge, Inc. v. CommissionerUnited States Tax Court · 1960
- Cox v. CommissionerUnited States Tax Court · 1980
- Velvet O'Donnell Corp. v. United StatesUnited States Court of Claims · 1983