Wattley v. Commissioner
United States Tax Court
Petitioner, the owner of all of the stock of a corporation, conducted a real estate brokerage business in its name. In 1951 he received from it a commission which it earned, through services rendered by him as its representative, for negotiating a lease. The commission received did not represent at least 80 per centum of the total compensation for personal services received by petitioner from the corporation during the period covered by the services.
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Petitioner, the owner of all of the stock of a corporation, conducted a real estate brokerage business in its name. In 1951 he received from it a commission which it earned, through services rendered by him as its representative, for negotiating a lease. The commission received did not represent at least 80 per centum of the total compensation for personal services received by petitioner from the corporation during the period covered by the services. Held, the entire commission is taxable income of petitioner for 1951, and section 107 (a) of the Internal Revenue Code of 1939 is not applicable.
1Opinion of the Court
OPINION.
Raum, Judge:
The principal issue relates to the commission of $30,666.67 paid by Mutual to R. B. Wattley Co. Inc. in 1951, and distributed by the latter to petitioner during the same year. The petitioner contends that R. B. Wattley Co. Inc. was merely a “dummy” or “front” used by him in carrying on his business as a real estate broker; that the $30,666.67 was a commission received by him for services which he rendered over a period of 19 years and 9 months as an individual and not as a representative of his wholly owned corporation; and that under the provisions of section 107 (a) of…
2Cases cited9 opinions
- Moline Properties, Inc. v. CommissionerSupreme Court of the United States · 1943
- National Investors Corporation v. HoeyCourt of Appeals for the Second Circuit · 1944
- Paymer v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1945
- Smart v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1945
- Commissioner of Internal Revenue v. Moline Properties, Inc.Court of Appeals for the Fifth Circuit · 1942
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3Cited by1 opinion
- Wattley v. CommissionerUnited States Tax Court · 1958