Emerson Electric Mfg. Co. v. Commissioner
United States Board of Tax Appeals
1. Commissions paid to brokers for the sale of the capital stock of a corporation are not deductible as ordinary and necessary expenses of carrying on a trade or business. 2. Fees paid to lawyers for negotiating the sale of the capital stock of a corporation and for securing an amendment to its charter to authorize an increase in its capitalization are not deductible as ordinary and necessary expenses of carrying on a trade or business. 3. Fees paid to the State of Missouri…
Read the full summary
1. Commissions paid to brokers for the sale of the capital stock of a corporation are not deductible as ordinary and necessary expenses of carrying on a trade or business. 2. Fees paid to lawyers for negotiating the sale of the capital stock of a corporation and for securing an amendment to its charter to authorize an increase in its capitalization are not deductible as ordinary and necessary expenses of carrying on a trade or business. 3. Fees paid to the State of Missouri for amending taxpayer's charter to increase its capitalization are not taxes deductible under section 234(a)(3), but are…
1Opinion of the Court
*934OPINION.
Arundell: The taxpayer claims as a deduction from its gross income for the fiscal year ended September 80, 1920, the amount of $104,501.25 paid for the purposes set forth in the findings of fact. The major item is the sum of $100,000 paid to Spencer Trask & Co. incident to the marketing of the taxpayer’s preferred stock of the par value of $1,000,000. The entire issue of 10,000 shares was subscribed for by Spencer Trask & Co., which paid the taxpayer in payment therefor $1,000,000. Under the laws of Missouri, if stock is issued for cash, it is necessary that the corporation receive…
2Cited by35 opinions
- Duncan Industries, Inc., etc. v. CommissionerUnited States Tax Court · 1979
- General Bancshares Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1964
- Fort Howard Corp. v. CommissionerUnited States Tax Court · 1994
- Hollywood Baseball Ass'n v. CommissionerUnited States Tax Court · 1964
- Firemen's Ins. Co. v. CommissionerUnited States Board of Tax Appeals · 1934
30 more not listed; retrieve them via the Exa API.