L. Schepp Co. v. Commissioner
United States Board of Tax Appeals
1. Upon consideration of the services actually performed, the amount of $4,000 is determined to be a reasonable allowance for the salary of an officer and director of a corporation who, together with a relative, owned all the capital stock. 2. The deduction for salaries of corporate officers is limited to amounts which are reasonably commensurate with the personal services actually rendered, and, though the judgment of corporate directors is not to be disregarded, there is…
Read the full summary
1. Upon consideration of the services actually performed, the amount of $4,000 is determined to be a reasonable allowance for the salary of an officer and director of a corporation who, together with a relative, owned all the capital stock. 2. The deduction for salaries of corporate officers is limited to amounts which are reasonably commensurate with the personal services actually rendered, and, though the judgment of corporate directors is not to be disregarded, there is no rule that it is conclusive or that it comports with the statutory qualifications of the tax deduction. 3. The test of…
1Opinion of the Court
L. SCHEPP COMPANY, PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
L. Schepp Co. v. Commissioner
Docket No. 42908.
United States Board of Tax Appeals
25 B.T.A. 419; 1932 BTA LEXIS 1530;
January 29, 1932, Promulgated
1. Upon consideration of the services actually performed, the amount of $4,000 is determined to be a reasonable allowance for the salary of an officer and director of a corporation who, together with a relative, owned all the capital stock.
2. The deduction for salaries of corporate officers is limited to amounts which are reasonably commensurate with the personal services…
2Cases cited17 opinions
- Botany Worsted Mills v. United StatesSupreme Court of the United States · 1929
- Gayler v. WilderSupreme Court of the United States · 1851
- L. Schepp Co. v. CommissionerUnited States Board of Tax Appeals · 1932
- Marsh v. Nichols, Shepard & Co.Supreme Court of the United States · 1888
- United States v. Philadelphia Knitting Mills Co.Court of Appeals for the Third Circuit · 1921
12 more not listed; retrieve them via the Exa API.