Stout v. Commissioner
United States Tax Court
1. A partnership, pursuant to the partnership agreement, paid "salaries" to petitioner Stout and some of the other partners, the amount paid as salaries being a charge to the capital account of each partner proportionately to the extent the payments exceeded net income of the partnership. The partners had contributed relatively small amounts to the partnership and the salaries were paid principally from a construction loan obtained by the partnership.
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1. A partnership, pursuant to the partnership agreement, paid "salaries" to petitioner Stout and some of the other partners, the amount paid as salaries being a charge to the capital account of each partner proportionately to the extent the payments exceeded net income of the partnership. The partners had contributed relatively small amounts to the partnership and the salaries were paid principally from a construction loan obtained by the partnership. Held, the amount received by petitioner Stout is taxable to him except to the extent it represented a return of his capital investment. Held,…
1Opinion of the Court
Joe W. Stout and Eudora Stout, Petitioners, v. Commissioner of Internal Revenue, Respondent. Florence L. Rogers, Petitioner, v. Commissioner of Internal Revenue, Respondent
Stout v. Commissioner
Docket Nos. 61555, 58593, 61556
United States Tax Court
31 T.C. 1199; 1959 U.S. Tax Ct. LEXIS 215;
March 25, 1959, Filed
Decisions will be entered under Rule 50.
1. A partnership, pursuant to the partnership agreement, paid "salaries" to petitioner Stout and some of the other partners, the amount paid as salaries being a charge to the capital account of each partner proportionately to the extent the payments…
2Cases cited14 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- North American Oil Consolidated v. BurnetSupreme Court of the United States · 1932
- Healy v. CommissionerSupreme Court of the United States · 1953
- Textile Mills Securities Corp. v. CommissionerSupreme Court of the United States · 1941
- Leonard v. MaxwellSupreme Court of North Carolina · 1939
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