Lilly v. Commissioner
United States Tax Court
1. The amount paid to the manager of a local branch of the business here involved in addition to his salary was a bonus constituting reasonable compensation for services he actually rendered, and was deductible by such business as an expense of doing business in the year in which paid. 2. A legal, bona fide partnership existed between the two petitioners, husband and wife, in the taxable years in the operation of the City Optical Co. and the Richmond Optical Co., and the…
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1. The amount paid to the manager of a local branch of the business here involved in addition to his salary was a bonus constituting reasonable compensation for services he actually rendered, and was deductible by such business as an expense of doing business in the year in which paid. 2. A legal, bona fide partnership existed between the two petitioners, husband and wife, in the taxable years in the operation of the City Optical Co. and the Richmond Optical Co., and the income derived therefrom is taxable to the two individuals in the proportion provided in the partnership contract. 3. The…
1Opinion of the Court
OPINION.
Leech, Judge:
The first issue presents the propriety of the deduction of $2,250 by petitioner Thomas B. Lilly, for the year 1942, as a bonus paid in that year by him to W. H. Lightfoot, who had been, since 1939, the manager of the Greensboro branch of the City Optical Co. This deduction was disallowed by respondent upon the ground that there was insufficient evidence to establish that it was in fact a bonus paid for services rendered. There is no dispute as to the fact that the payment was made to and received by W. H. Lightfoot.
The evidence in the record upon this item is…
2Cases cited32 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Commissioner v. TowerSupreme Court of the United States · 1946
- Commissioner v. HeiningerSupreme Court of the United States · 1943
- Oscanyan v. Arms Co.Supreme Court of the United States · 1881
- Lusthaus v. CommissionerSupreme Court of the United States · 1946
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3Cited by12 opinions
- Lilly v. CommissionerSupreme Court of the United States · 1952
- Weather-Seal Mfg. Co. v. CommissionerUnited States Tax Court · 1951
- Richardson v. CommissionerCourt of Appeals for the Fourth Circuit · 1959
- Porto Rico Telephone Co. v. DescartesSupreme Court of Puerto Rico · 1957
- American Brewery, Inc. v. United StatesDistrict Court, D. Maryland · 1954
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