Gisholt Machine Co. v. Commissioner
United States Tax Court
An amount reasonably related to services performed and irrevocably paid in 1941 by a corporation to a retirement trust for selected employees held deductible as a business expense under section 23 (a), Internal Revenue Code, irrespective of its possible aspect as a contribution under section 23 (p) to a pension trust such as described in section 165.
1Opinion of the Court
OPINION.
Stern hagen, Judge-.
The Commissioner disallowed a deduction in 1941 of the $173,500 paid by the taxpayer corporation to the trustee of its newly established “Executive Employees’ Retirement Trust.” He held that the amount was not deductible under either section 23 (a) or section 23 (p); that it was not a reasonable allowance for compensation for personal services of employees or otherwise an ordinary and necessary business expense; and that the trust was not an employees’ trust under section 165, as amended by section 218 of the Revenue Act of 1939.
The taxpayer claims the deduction…
2Cases cited2 opinions
- Lord v. CommissionerUnited States Tax Court · 1942
- Wilcox Inv. Co. v. CommissionerUnited States Tax Court · 1944
3Cited by5 opinions
- H. S. D. Co. v. Kavanagh, Collector of Internal RevenueCourt of Appeals for the Sixth Circuit · 1951
- Wesley Heat Treating Co. v. CommissionerUnited States Tax Court · 1958
- Farner v. Comm'rUnited States Tax Court · 2012
- Gisholt Machine Co. v. CommissionerUnited States Tax Court · 1945
- Wesley Heat Treating Co. v. CommissionerUnited States Tax Court · 1958