Roob v. Commissioner
United States Tax Court
1. Petitioners, husband and wife, operated a photography studio which elected to report its income as a small business corporation pursuant to sec. 1372, I.R.C. 1954. Petitioners and their children owned the stock of the studio corporation in equal shares. Petitioners were the only shareholders receiving a salary from the studio and they received identical salaries during each year in question.
Read the full summary
1. Petitioners, husband and wife, operated a photography studio which elected to report its income as a small business corporation pursuant to sec. 1372, I.R.C. 1954. Petitioners and their children owned the stock of the studio corporation in equal shares. Petitioners were the only shareholders receiving a salary from the studio and they received identical salaries during each year in question. Held, the husband's salary was properly increased to reflect the additional value of his services to the studio business, requiring a reallocation of dividends as to all other shareholders. 2. In 1964,…
1Opinion of the Court
Withey, Judge:
Respondent determined deficiencies in petitioners’ income tax for the years and in the amounts as follows:
[[Image here]]
The cases have been consolidated and will be decided together.
The issues presented for our determination are:(1) Whether respondent correctly reallocated dividends received by the shareholders of Roob Studio, Inc., in order to reflect the value of services rendered to the corporation by Walter J. Roob, a shareholder.(2) Whether the $1,000 received in 1964 by Roob Studio, Inc., in accordance with the “franchise agreement” entered into with Donald and Marilyn…
2Cases cited4 opinions
- Mayson Mfg. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1949
- Patton v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1948
- Joe L. Schmitt, Jr., and Helen N. Schmitt v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1959
- Schmitt v. CommissionerUnited States Tax Court · 1958
3Cited by11 opinions
- Bramlette Building Corporation, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1970
- Bramlette Bldg. Corp. v. CommissionerUnited States Tax Court · 1969
- Johnson v. CommissionerUnited States Tax Court · 1969
- Davis v. CommissionerUnited States Tax Court · 1975
- Joly v. CommissionerUnited States Tax Court · 1998
6 more not listed; retrieve them via the Exa API.