Wooten v. Commissioner
United States Tax Court
1. Deduction -- Unpaid Expense -- Salary -- Section 24 (c). -- A taxpayer is not allowed to deduct from his gross income for 1941 certain bonuses which were merely accrued on his books in 1941 and were paid in September 1942 to his brothers and sister in his employ. 2. Deduction -- Capital Expenditure or Expense. -- The cost to a taxpayer of moving his radio tower in order to ensure improved reception for his radio listeners constituted a capital expenditure within section…
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1. Deduction -- Unpaid Expense -- Salary -- Section 24 (c). -- A taxpayer is not allowed to deduct from his gross income for 1941 certain bonuses which were merely accrued on his books in 1941 and were paid in September 1942 to his brothers and sister in his employ. 2. Deduction -- Capital Expenditure or Expense. -- The cost to a taxpayer of moving his radio tower in order to ensure improved reception for his radio listeners constituted a capital expenditure within section 24 (a) (2) of the code and not a deductible ordinary and necessary expense of his business, even though the benefit from…
1Opinion of the Court
OPINION.
Mukdock, Judge:
The first question is whether the petitioner’s right to deduct $4,000 accrued as salaries on his books for 1941 is barred by section 24 (c) ,1 There is no question of the applicability of section 24 (c) (3), nor is there any real question of the applicability of section 24 (c) (1), since the amounts in question were paid by checks issued in September 1942, which was more than two and one-half months after the close of 1941, and, obviously, the mere accrual of these expenses on the books of the petitioner in 1941 was not payment within the meaning of this statutory…
2Cases cited4 opinions
- Michael Flynn Mfg. Co. v. CommissionerUnited States Tax Court · 1944
- Ohio Battery & Ignition Co. v. CommissionerUnited States Tax Court · 1945
- P. G. Lake, Inc. v. CommissionerUnited States Tax Court · 1944
- Turner v. CommissionerUnited States Tax Court · 1945
3Cited by18 opinions
- Geiger & Peters, Inc. v. CommissionerUnited States Tax Court · 1957
- Platt Trailer Co. v. CommissionerUnited States Tax Court · 1955
- Matson Navigation Co. v. CommissionerUnited States Tax Court · 1977
- Red Star Yeast & Products Co. v. CommissionerUnited States Tax Court · 1955
- Island Gas, Inc. v. CommissionerUnited States Tax Court · 1958
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