Legal Opinion
Leonard Pipeline Contractors, Ltd. v. Commissioner of Internal Revenue
Court of Appeals for the Ninth Circuit
Decided April 24, 1998No. 97-70227PublishedCited by 17 opinions
1Opinion of the Court
NOONAN, Circuit Judge:
Leonard Pipeline Contractors, Ltd. (the Taxpayer) appeals the judgment of the United States Tax Court limiting the deduction of reasonable compensation to its president, Richard L. Leonard, for the tax year 1987 to $700,000. The case involves the meaning of “reasonable” in the familiar and fundamental statute, 26 U.S.C. § 162, governing the deduction of compensation as an expense of doing business. Holding that the Tax Court has not furnished an adequate explanation of what it finds reasonable, we reverse and remand.
FACTS
Richard L. Leonard is a forty-year veteran of the…
2Cases cited8 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Townsend v. Holman Consulting Corp.Court of Appeals for the Ninth Circuit · 1990
- Lucas v. Ox Fibre Brush Co.Supreme Court of the United States · 1930
- Elliotts, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1983
- Jerry E. Stewart Richard Eugene Smith Kenneth Wilson William Brown v. Brad Gates, Sheriff William Wallace Ralph A. Diedrich Robert W. BattinCourt of Appeals for the Ninth Circuit · 1993
3 more not listed; retrieve them via the Exa API.
3Cited by17 opinions
- Estate of Cyril I. Magnin, Deceased Donald Isaac Magnin v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1999
- Estate of Simplot v. Comm'rUnited States Tax Court · 1999
- Labelgraphics, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 2000
- Estate of Paul Mitchell, Deceased, Patrick T. Fujieki v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 2001
- Estate of Trompeter v. CommissionerCourt of Appeals for the Ninth Circuit · 2002
12 more not listed; retrieve them via the Exa API.