Joseph Goodnow & Co. v. Commissioner
United States Board of Tax Appeals
1. By unanimous consent of all the stockholders corporate net profits may be divided and distributed among the stockholders other than ratably according to stockholdings. 2. The evidence in the instant case discloses the intent of the only two stockholders of the petitioner to divide the net profits between them without regard to stock holdings, and the proceeds of such division did not constitute additonal salaries to the recipient.
1Opinion of the Court
*1157OPINION.
Korner, Chairman:
It appears that petitioner filed tax returns for the years here in question, reporting and taking deduction for salaries for Palmer and Boggs in the amount of $3,900 each — a total in each year of $7,800. The respondent allowed these deductions without question, but made certain other adjustments resulting in a deficiency. Those adjustments are not complained of by the petitioner. In its petition it specifically waives them. It appears, however, that the petitioner sought to have the respondent make a further adjustment by allowing one-half of Palmer’s share of the…
2Cases cited1 opinion
- Breslin v. Fries-Breslin Co.Supreme Court of New Jersey · 1904
3Cited by11 opinions
- Moser v. CommissionerUnited States Tax Court · 1989
- Dudley v. CommissionerUnited States Tax Court · 1959
- Glenshaw Glass Co. v. CommissionerUnited States Tax Court · 1946
- Dudley v. CommissionerUnited States Tax Court · 1959
- Dudley v. CommissionerUnited States Tax Court · 1959
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