Nicholas Co. v. Commissioner
United States Tax Court
1. Amounts treated by petitioner as "salary" to its president, who performed little or no services, held, in the circumstances, to represent part of the purchase price of assets of the going business of a predecessor proprietorship which had theretofore been operated by said president; and that said amounts are not deductible as current operating expenses. 2. Amounts paid by petitioner to or at the direction of said proprietor, and claimed by it to represent the expense of…
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1. Amounts treated by petitioner as "salary" to its president, who performed little or no services, held, in the circumstances, to represent part of the purchase price of assets of the going business of a predecessor proprietorship which had theretofore been operated by said president; and that said amounts are not deductible as current operating expenses. 2. Amounts paid by petitioner to or at the direction of said proprietor, and claimed by it to represent the expense of "leasing" assertedly unassignable intangible assets of the proprietorship, held, also to be part of the purchase price of…
1Opinion of the Court
Pierce, Judge:
The respondent determined deficiencies in the income taxes of the petitioner corporation for the calendar years and in amounts as follows:
Year Deficiency
1955 _$5, 544.93
1956 _ 5, 336.31
1957 _ 1,412. 09
As will be hereinafter shown, a proprietorship in the business of serving as a broker for manufacturers of food products and kindred items, was incorporated — the resultant corporation being the petitioner herein — and the proprietor was elected president. Three questions are presented for decision:(1) Whether, in the circumstances here presented, the petitioner could properly…
2Cases cited6 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Michaels v. CommissionerUnited States Tax Court · 1949
- Boe v. CommissionerUnited States Tax Court · 1961
- Thrifiticheck Service Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1961
- Thrifticheck Service Corp. v. CommissionerUnited States Tax Court · 1960
1 more not listed; retrieve them via the Exa API.
3Cited by6 opinions
- Yelencsics v. CommissionerUnited States Tax Court · 1980
- Import Specialties, Inc. v. CommissionerUnited States Tax Court · 1982
- Nicholas Co. v. CommissionerUnited States Tax Court · 1962
- Royal Arrow Co. v. CommissionerUnited States Tax Court · 1972
- Turkey Creek, Inc. v. CommissionerUnited States Tax Court · 1987
1 more not listed; retrieve them via the Exa API.