Bedford Sportswear, Inc. v. Commissioner
United States Tax Court
The amounts which petitioner is entitled to deduct for each of the taxable years as a reasonable allowance for compensation for the services of the heads of petitioner's sales department during each taxable year are determined. Upon the facts: Held, that the 5 per cent less sales expenses "formula" is a proper method for measuring the total net amount of the commissions of the heads of the sales department as compensation for their services during each year.
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The amounts which petitioner is entitled to deduct for each of the taxable years as a reasonable allowance for compensation for the services of the heads of petitioner's sales department during each taxable year are determined. Upon the facts: Held, that the 5 per cent less sales expenses "formula" is a proper method for measuring the total net amount of the commissions of the heads of the sales department as compensation for their services during each year. Held, further, that the amounts of the commissions in question were arrived at in good faith and in accordance with a customary method…
1Opinion of the Court
Bedford Sportswear, Inc. v. Commissioner.
Bedford Sportswear, Inc. v. Commissioner
Docket Nos. 38016 and 44980.
United States Tax Court
T.C. Memo 1954-91; 1954 Tax Ct. Memo LEXIS 162; 13 T.C.M. (CCH) 634; T.C.M. (RIA) 54196;
June 30, 1954, Filed
The amounts which petitioner is entitled to deduct for each of the taxable years as a reasonable allowance for compensation for the services of the heads of petitioner's sales department during each taxable year are determined. Upon the facts: Held, that the 5 per cent less sales expenses "formula" is a proper method for measuring the total net amount of…
2Cases cited4 opinions
- Botany Worsted Mills v. United StatesSupreme Court of the United States · 1929
- Consolidated Apparel Co. v. CommissionerUnited States Tax Court · 1952
- Faucette Co. v. CommissionerUnited States Tax Court · 1951
- Kerrigan Iron Works, Inc. v. CommissionerUnited States Tax Court · 1951