Schalk Chemical Co. v. Commissioner
United States Tax Court
1. Corporation, on an accrual basis, held not entitled to deduct as an ordinary and necessary business expense a liability it voluntarily assumed in 1950 to reimburse three beneficiaries of a spend-thrift trust, which held all of its stock, for a downpayment of $ 25,000 made by them in 1948, pursuant to the terms of an agreement with S, the fourth beneficiary, wherein S agreed to sell, and they agreed to buy, for $ 45,000 his one-sixth minority interest in the stock of the…
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1. Corporation, on an accrual basis, held not entitled to deduct as an ordinary and necessary business expense a liability it voluntarily assumed in 1950 to reimburse three beneficiaries of a spend-thrift trust, which held all of its stock, for a downpayment of $ 25,000 made by them in 1948, pursuant to the terms of an agreement with S, the fourth beneficiary, wherein S agreed to sell, and they agreed to buy, for $ 45,000 his one-sixth minority interest in the stock of the corporation at the termination of the trust. 2. Corporation held not to be entitled to deduct as an ordinary and…
1Opinion of the Court
Schalk Chemical Company, a California Corporation, Petitioner, v. Commissioner of Internal Revenue, Respondent. Gerald I. Farman and Hazel I. Farman, Petitioners, v. Commissioner of Internal Revenue, Respondent. John Carver Baker and Patricia Baker, Petitioners, v. Commissioner of Internal Revenue, Respondent
Schalk Chemical Co. v. Commissioner
Docket Nos. 63853, 63855, 63862
United States Tax Court
32 T.C. 879; 1959 U.S. Tax Ct. LEXIS 128;
July 9, 1959, Filed
Decisions will be entered for the respondent.
1. Corporation, on an accrual basis, held not entitled to deduct as an ordinary and necessary…
2Cases cited11 opinions
- Wall v. United StatesCourt of Appeals for the Fourth Circuit · 1947
- Paramount-Richards Theatres, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1946
- Joseph R. Holsey and Eleanor T. Holsey v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Monroe Zipp and Helen Zipp v. Commissioner of Internal Revenue, Bernard Zipp and Jean B. Zipp v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1958
- Catholic News Publishing Co. v. CommissionerUnited States Tax Court · 1948
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