Legal Opinion

Moxa Bldg. Co. v. Commissioner

United States Board of Tax Appeals

Decided October 30, 1934No. Docket No 53024Published

During 1926 petitioner entered into a contract with certain individuals, one of whom was its principal stockholder, that if they would advance money to finance the purchase of certain property it would pay to them all of its profits as compensation for the loan and for the performance of certain services. Held, that the amount of profits distributed to the individuals is not a legal deduction from gross income.

1Opinion of the Court

MOXA BUILDING COMPANY, INC., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.

Moxa Bldg. Co. v. Commissioner

Docket No 53024.

United States Board of Tax Appeals

31 B.T.A. 457; 1934 BTA LEXIS 1091;

October 30, 1934, Promulgated

During 1926 petitioner entered into a contract with certain individuals, one of whom was its principal stockholder, that if they would advance money to finance the purchase of certain property it would pay to them all of its profits as compensation for the loan and for the performance of certain services. Held, that the amount of profits distributed to the…

2Cases cited1 opinion

  1. Moxa Bldg. Co. v. CommissionerUnited States Board of Tax Appeals · 1934

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