Ernest, Holdeman & Collet, Inc. v. Commissioner
United States Tax Court
Held: 1. Petitioner paid unreasonable and excessive compensation to each of its five officer-stockholders during the taxable years 1952 and 1953. Reasonable compensation is determined. 2. Petitioner correctly valued certain machines at less than cost on its closing inventories for each of the taxable years 1952, 1953, and 1954. 3. Respondent correctly added freightin to the cost of inventories for each of the taxable years 1952, 1953, and 1954. 4. Premiums paid by petitioner…
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Held: 1. Petitioner paid unreasonable and excessive compensation to each of its five officer-stockholders during the taxable years 1952 and 1953. Reasonable compensation is determined. 2. Petitioner correctly valued certain machines at less than cost on its closing inventories for each of the taxable years 1952, 1953, and 1954. 3. Respondent correctly added freightin to the cost of inventories for each of the taxable years 1952, 1953, and 1954. 4. Premiums paid by petitioner during 1952 and 1953 on health and accident insurance policies furnished to four of its five officers were deductible…
1Opinion of the Court
Ernest, Holdeman & Collet, Inc. v. Commissioner.
Ernest, Holdeman & Collet, Inc. v. Commissioner
Docket No. 71250.
United States Tax Court
T.C. Memo 1960-10; 1960 Tax Ct. Memo LEXIS 280; 19 T.C.M. (CCH) 42; T.C.M. (RIA) 60010;
January 29, 1960
Held: 1. Petitioner paid unreasonable and excessive compensation to each of its five officer-stockholders during the taxable years 1952 and 1953. Reasonable compensation is determined.
2. Petitioner correctly valued certain machines at less than cost on its closing inventories for each of the taxable years 1952, 1953, and 1954.
3. Respondent correctly added…
2Cases cited11 opinions
- Botany Worsted Mills v. United StatesSupreme Court of the United States · 1929
- Mayson Mfg. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1949
- Mellon v. CommissionerUnited States Board of Tax Appeals · 1937
- Long Island Drug Co. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1940
- Long Island Drug Co. v. CommissionerUnited States Board of Tax Appeals · 1937
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