Vogue Silk Hosiery Co. v. Commissioner
United States Board of Tax Appeals
1. Held, that in the circumstances herein the par value of stock issued as a bonus to officers as additional salary for services rendered is not deductible from petitioner's income as ordinary and necessary expenses. 2. Petitioner's claim for additional depreciation denied.
1Opinion of the Court
*133OPINION.
Lansdon :
The respondent had determined to the extent of $20,000 the salaries paid to officers of the petitioner in the year 1928. The amount of such disallowance represents stock issued to such officers as bonuses, in addition to cash paid for the services of Samuel Tait, John Tait and Ernest Tither, in the amounts of $17,709.25, $6,776.14 and $14,269.59, respectively. In addition to such amounts the petitioner paid a cash salary to Walter Tither, who became an officer and stockholder to the extent of 100 shares on May 1,1928, in the amount of $10,438.28. On the record we are of the…
2Cited by4 opinions
- Kelly v. CommissionerUnited States Tax Court · 1957
- Petrossi v. CommissionerUnited States Tax Court · 1970
- Summitville Face Brick Co. v. CommissionerUnited States Tax Court · 1944
- Vogue Silk Hosiery Co. v. CommissionerUnited States Board of Tax Appeals · 1932