Old Colony Trust Co. v. Commissioner
United States Board of Tax Appeals
1. A corporation of which the decedent was president and the principal stockholder voted the decedent a nominal monthly salary at the beginning of each of the years 1923 and 1924, and an additional large amount of salary based upon the financial condition of the company at the close of each year. The additional amount of salary voted in each year was paid to the decedent when the corporation was in funds to make such payment.
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1. A corporation of which the decedent was president and the principal stockholder voted the decedent a nominal monthly salary at the beginning of each of the years 1923 and 1924, and an additional large amount of salary based upon the financial condition of the company at the close of each year. The additional amount of salary voted in each year was paid to the decedent when the corporation was in funds to make such payment. The decedent made his income tax returns upon the cash receipts and disbursements basis. Held, that the decedent is taxable upon only the amounts of salary actually…
1Opinion of the Court
*1065OPINION.
Smith:
In these proceedings issue is raised as to the amount received by and taxable to the decedent in each of the years 1923 and 1924 as salary from the Crown Shade & Screep Company. The petitioners contend that the decedent is taxable in each year only upon the amounts of salary actually received without regard to the amounts voted to him by the company. The respondent takes the position that the total amounts of salary voted to the decedent in each of the years 1923 and 1924 were constructively received by him and are taxable to him in those years.
The test, as we understand it, in…
2Cited by8 opinions
- Rosenberg v. United StatesDistrict Court, E.D. Missouri · 1969
- Bartlett v. CommissionerUnited States Board of Tax Appeals · 1933
- Omaha Nat'l Bank v. CommissionerUnited States Board of Tax Appeals · 1934
- Price v. CommissionerUnited States Tax Court · 1986
- Bartlett v. CommissionerUnited States Board of Tax Appeals · 1933
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