Wilcox Inv. Co. v. Commissioner
United States Tax Court
Petitioner in 1938, 1939, and 1940, the taxable years, paid premiums on a policy taken out in 1934 and providing for an annuity for one of its employees, to begin in 1945. Under the policy and an endorsement thereon the employee had no rights therein prior to 1945, and the petitioner could until 1945 surrender the policy for tabulated cash values, borrow on it, and receive death benefits in case of the death of the employee.
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Petitioner in 1938, 1939, and 1940, the taxable years, paid premiums on a policy taken out in 1934 and providing for an annuity for one of its employees, to begin in 1945. Under the policy and an endorsement thereon the employee had no rights therein prior to 1945, and the petitioner could until 1945 surrender the policy for tabulated cash values, borrow on it, and receive death benefits in case of the death of the employee. Held, that the premiums were not ordinary and necessary expenses of petitioner's business.
1Opinion of the Court
OPINION.
Disney, Judge:
These proceedings, duly consolidated, involve income taxes for the years 1938, 1939, and 1940. The petitions herein were filed for the purpose of redetermining the following deficiencies: $293.50. (1938), $150.40 (1939), and $271.27 (1940).
The only issue is whether the annual premiums paid by petitioner on what is denominated a “Retirement Annuity” contract, according to the terms of which a particular employee of petitioner would become entitled under certain conditions to receive an annual pension upon reaching the age of 60 in 1945, are deductible from petitioner’s…
2Cases cited2 opinions
- Lucas v. American Code Co.Supreme Court of the United States · 1930
- Dobson v. CommissionerSupreme Court of the United States · 1944
3Cited by10 opinions
- Surface Combustion Corp. v. CommissionerUnited States Tax Court · 1947
- O'Brien v. CommissionerUnited States Tax Court · 1966
- D.J. Lee, M.D., Inc. v. CommissionerUnited States Tax Court · 1989
- Gisholt Machine Co. v. CommissionerUnited States Tax Court · 1945
- D.J. Lee, M.D., Inc. v. CommissionerUnited States Tax Court · 1989
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