Good Chevrolet v. Commissioner
United States Tax Court
In 1971 and 1972, B and S, who were the principal officers and sole shareholders of P, received compensation consisting of modest salaries and substantial bonuses which constituted a predetermined percentage of the profits.
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In 1971 and 1972, B and S, who were the principal officers and sole shareholders of P, received compensation consisting of modest salaries and substantial bonuses which constituted a predetermined percentage of the profits. P, a Chevrolet dealership, never paid any dividends but, in 1971 and 1972, made substantial additions to a working capital account maintained in accordance with the requirements of Chevrolet.Held, under all the circumstances, the compensation received by B and S in 1971 and 1972 was reasonable and was for services actually rendered.
1Opinion of the Court
GOOD CHEVROLET, Petitioner v. COMMISSIONER OF INTERNAL REVENUE, Respondent
Good Chevrolet v. Commissioner
Docket No. 3727-75.
United States Tax Court
T.C. Memo 1977-291; 1977 Tax Ct. Memo LEXIS 147; 36 T.C.M. (CCH) 1157; T.C.M. (RIA) 770291;
August 30, 1977, Filed
In 1971 and 1972, B and S, who were the principal officers and sole shareholders of P, received compensation consisting of modest salaries and substantial bonuses which constituted a predetermined percentage of the profits. P, a Chevrolet dealership, never paid any dividends but, in 1971 and 1972, made substantial additions to a working…
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- Nor-Cal Adjusters, AKA Nor-Cal Insurance Adjusters, Formerly Hobson Adjusters, a Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1974
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