Darco Realty Corp. v. Commissioner
United States Tax Court
Held, that an amount paid by petitioner in 1955, purporting to be a "finder's fee" paid pursuant to a resolution of the board of directors in 1927 for services rendered in 1927 by its principal stockholders and officers for "finding" the petitioner's principal asset, a lease, did not represent a payment for services rendered, but, rather, constituted a distribution of profits by petitioner, and that therefore such payment is not deductible as an ordinary and necessary…
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Held, that an amount paid by petitioner in 1955, purporting to be a "finder's fee" paid pursuant to a resolution of the board of directors in 1927 for services rendered in 1927 by its principal stockholders and officers for "finding" the petitioner's principal asset, a lease, did not represent a payment for services rendered, but, rather, constituted a distribution of profits by petitioner, and that therefore such payment is not deductible as an ordinary and necessary business expense under section 162(a) of the Internal Revenue Code of 1954.
1Opinion of the Court
Darco Realty Corporation v. Commissioner.
Darco Realty Corp. v. Commissioner
Docket No. 72287.
United States Tax Court
T.C. Memo 1961-110; 1961 Tax Ct. Memo LEXIS 239; 20 T.C.M. (CCH) 544; T.C.M. (RIA) 61110;
April 18, 1961
Held, that an amount paid by petitioner in 1955, purporting to be a "finder's fee" paid pursuant to a resolution of the board of directors in 1927 for services rendered in 1927 by its principal stockholders and officers for "finding" the petitioner's principal asset, a lease, did not represent a payment for services rendered, but, rather, constituted a distribution of profits by…
2Cases cited4 opinions
- Irving Sachs v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1960
- Sachs v. CommissionerUnited States Tax Court · 1959
- Heil Beauty Supplies, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1952
- George La Monte & Son v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1929