U. S. Asiatic Co. v. Commissioner
United States Tax Court
1. Held, that a deduction is not allowable to petitioner corporation for the year 1948, in respect of an amount paid to its sole stockholder as salary for periods preceding its incorporation when he was operating as a joint venturer or sole proprietor, and as reimbursements of expenses incurred and paid by him in his operations during such periods. 2. Held, that deductions are not allowable to the petitioner corporation, for accrued "interest" on amounts that were carried in…
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1. Held, that a deduction is not allowable to petitioner corporation for the year 1948, in respect of an amount paid to its sole stockholder as salary for periods preceding its incorporation when he was operating as a joint venturer or sole proprietor, and as reimbursements of expenses incurred and paid by him in his operations during such periods. 2. Held, that deductions are not allowable to the petitioner corporation, for accrued "interest" on amounts that were carried in its accounts as "loans" payable to its sole stockholder, for the reason that such amounts actually represented equity…
1Opinion of the Court
Pierce, Judge:
The respondent determined deficiencies in income tax for the years 1950, 1951, and 1952, in the amounts of $108.16, $9,569.80, and $1,057.50, respectively. All of such deficiency for 1950, and part of that for 1951, resulted from respondent’s disallowance of a reported net operating loss for the year 1948, in respect of which the benefits of a net operating loss carryover had been claimed.
The issues for decision are:(1) Whether petitioner is entitled to deduct for the year 1948, as an ordinary and necessary business expense, $11,329.85 which it' paid to its sole stockholder…
2Cases cited11 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Griffiths v. CommissionerSupreme Court of the United States · 1939
- John Kelley Co. v. CommissionerSupreme Court of the United States · 1946
- Dobkin v. CommissionerUnited States Tax Court · 1950
6 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- Rollins v. CommissionerUnited States Tax Court · 1959
- Albertson's, Inc. v. CommissionerUnited States Tax Court · 1990
- Tele-Communications v. CommissionerUnited States Tax Court · 1990
- Bianchi v. CommissionerUnited States Tax Court · 1976
- La Mastro v. CommissionerUnited States Tax Court · 1979
13 more not listed; retrieve them via the Exa API.