Anthony P. Miller, Inc. v. Commissioner
United States Tax Court
1. Petitioner, on January 1, 1941, delivered demand promissory notes to its president as compensation for services rendered during 1940. Held, such compensation was not "paid" within the meaning of section 24 (c) (1) of the Internal Revenue Code and is not deductible as a business expense by petitioner for 1940. 2. Determined that stock of X Co. did not become worthless in 1940. 3. Value of the stock of certain corporations paid petitioner for construction work determined.
1Opinion of the Court
OPINION.
Compensation Issue.
Hill, Judge-.
Respondent contends that the provisions of section 24 (c) of the Internal Revenue Code operate to prevent petitioner from deducting as a business expense the amount of $42,000, bonus and salary, received by Miller for his services during 1940. Section 24 (c) provides as follows:
SEC. 24. ITEMS NOT DEDUCTIBLE.
*******(c) Unpaid Expenses and Intekest. — In computing net income no deduction shall be allowed under section 23 (a), relating to expenses incurred, or under section 23 (b), relating to interest accrued—(1) If such expenses or interest are not paid…
2Cases cited9 opinions
- Eckert v. BurnetSupreme Court of the United States · 1931
- Helvering v. City Bank Farmers Trust Co.Supreme Court of the United States · 1935
- Helvering v. PriceSupreme Court of the United States · 1940
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- Cleaver v. CommissionerUnited States Tax Court · 1946
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3Cited by34 opinions
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- Akron Welding & Spring Co. v. CommissionerUnited States Tax Court · 1948
- Hayne v. CommissionerUnited States Tax Court · 1954
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