Legal Opinion
Mulcahy, Pauritsch, Salvador & Co. v. Commissioner
Court of Appeals for the Seventh Circuit
Decided May 17, 2012No. 11-2105PublishedCited by 7 opinions
1Opinion of the Court
POSNER, Circuit Judge.
A corporation can deduct from its taxable income a “reasonable allowance for salaries or other compensation for personal services actually rendered.” 26 U.S.C. § 162(a)(1); see Treas. Reg. §§ 1.162-7, 1.162-9. But it cannot deduct dividends. They are not an expense, but a distribution to shareholders of corporate income after the corporation has paid corporate income tax. Thus a corporation that can get away with pretending that a dividend paid to a shareholder is a business expense will have a lower corporate income tax liability. The income tax liability of the…
2Cases cited15 opinions
- United States v. BoyleSupreme Court of the United States · 1985
- Commissioner v. National Alfalfa Dehydrating & Milling Co.Supreme Court of the United States · 1974
- In the Matter of Douglas R. Prince and Jane Prince, Debtors-AppellantsCourt of Appeals for the Seventh Circuit · 1996
- David E. Watson, Pc v. United StatesCourt of Appeals for the Eighth Circuit · 2012
- American Boat Co., LLC v. United StatesCourt of Appeals for the Seventh Circuit · 2009
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3Cited by7 opinions
- Matthew Thomas v. UBS AGCourt of Appeals for the Seventh Circuit · 2013
- Brown v. CommissionerCourt of Appeals for the Seventh Circuit · 2012
- Atkins v. Robbins, Salomon & Patt, Ltd.Appellate Court of Illinois · 2018
- Transupport, Incorporated v. Commissioner of IRSCourt of Appeals for the First Circuit · 2018
- Allen v. United StatesDistrict Court, E.D. Wisconsin · 2018
2 more not listed; retrieve them via the Exa API.