Akron Welding & Spring Co. v. Commissioner
United States Tax Court
1. Notes given in taxable year by petitioner corporation to its principal stockholder-officers as payment of portions of salaries due to them for services during that year, accrued on its books as notes payable, and reported by such officers in their returns made on the cash basis, held, deductible from its gross income and not subject to the provisions of section 24 (c). 2. Unpaid rent due to an officer of petitioner, accrued on its books as an account payable in the…
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1. Notes given in taxable year by petitioner corporation to its principal stockholder-officers as payment of portions of salaries due to them for services during that year, accrued on its books as notes payable, and reported by such officers in their returns made on the cash basis, held, deductible from its gross income and not subject to the provisions of section 24 (c). 2. Unpaid rent due to an officer of petitioner, accrued on its books as an account payable in the taxable year, but intended to constitute a capital investment by such officer and liquidated by the issuance to him of…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
The single issue before us is whether or not the petitioner is entitled to deductions for rent and salaries due to its principal stockholders, George I. Stuver and George W. Stuver, and duly accrued on its books during the taxable year, as provided by section 23 (a), Internal Kevenue Code,1 modified by section 24 (c).2 Bespondent disallowed the items as deductions under the provisions of section 23 (c) of the code. It is well established that all three conditions set forth in section 24 (c) must co-exist in order to make that section operative. Michael Flynn Mfg.…
2Cases cited2 opinions
- Michael Flynn Mfg. Co. v. CommissionerUnited States Tax Court · 1944
- Anthony P. Miller, Inc. v. CommissionerUnited States Tax Court · 1946
3Cited by32 opinions
- Don E. Williams Co. v. CommissionerSupreme Court of the United States · 1977
- Sachs v. Commissioner of Internal Revenue. Slaymaker Lock Co. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1953
- Liflans Corporation v. The United StatesUnited States Court of Claims · 1968
- Mid-State Products Co. v. CommissionerUnited States Tax Court · 1954
- Logan Engineering Co. v. CommissionerUnited States Tax Court · 1949
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