Reub Isaacs & Co. v. Commissioner
United States Board of Tax Appeals
The taxpayer is entitled, under section 234(a)(1) of the Revenue Act of 1918, to deduct as an ordinary and necessary expense reasonable extra compensation to officers and employees agreed upon by the directors before the end of the taxable year.
1Opinion of the Court
*47OPINION.
Littleton :
This is an appeal by the taxpayer, Beub Isaacs & Co., Inc., from a determination of the Commissioner asserting additional income and profits taxes for the fiscal years ending October 31, 1918, 1919, and 1920.
The taxpayer is a closely held New York corporation. In its returns for each of the years involved, the taxpayer deducted, among other items, as an ordinary and necessary expense of doing business, the sum of $10,000 for the year 1918, $11,500 for the year 1919, and $16,000 for the year 1920; the same being extra compensation paid to its officers and employees for…
2Cases cited9 opinions
- Stetler v. . McFarlaneNew York Court of Appeals · 1921
- Corinne Mill, Canal & Stock Co. v. ToponceSupreme Court of the United States · 1894
- Bagley v. Carthage, Watertown & Sackets Harbor RailroadNew York Court of Appeals · 1900
- Bartlett v. Mystic River Corp.Massachusetts Supreme Judicial Court · 1890
- Gerard v. Empire Square Realty Co.Appellate Division of the Supreme Court of the State of New York · 1921
4 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Levenson & Klein, Inc. v. CommissionerUnited States Tax Court · 1977
- Novo Trading Corp. v. Commissioner of Internal Rev.Court of Appeals for the Second Circuit · 1940
- Hughes v. CommissionerUnited States Tax Court · 1964
- Mad Auto Wrecking v. CommissionerUnited States Tax Court · 1995
- Acme Constr. Co. v. CommissionerUnited States Tax Court · 1995
12 more not listed; retrieve them via the Exa API.