Lincoln Electric Co. v. Commissioner
United States Tax Court
Voluntary disbursements by petitioner in the purchase of annuities for certain employees in 1940 and additional payments for a similar purchase in 1941, as well as contributions in the latter year to a "profit-sharing" trust, on the facts, held, (1) not deductible either as "compensation for services actually rendered" or as ordinary and necessary business expenses, under section 23 (a), I. R. C.; (2) not a part of the cost of goods sold to be reflected as such in the…
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Voluntary disbursements by petitioner in the purchase of annuities for certain employees in 1940 and additional payments for a similar purchase in 1941, as well as contributions in the latter year to a "profit-sharing" trust, on the facts, held, (1) not deductible either as "compensation for services actually rendered" or as ordinary and necessary business expenses, under section 23 (a), I. R. C.; (2) not a part of the cost of goods sold to be reflected as such in the computation of gross income, but rather they enter into the computation of net income, in which computation their…
1Opinion of the Court
OPINION.
Leech, Judge:
The sole contested issue for the taxable year 1940 arises from respondent’s disallowance, as a deduction from gross income, of the sum of $400,008.84 paid by petitioner in that year to the Sun Life Assurance Co. of Canada to purchase funded annuity contracts for certain of its officers and employees. The issues for 1941 arise from respondent’s disallowance as a deduction (1) of the sum of $575,206.43 paid to purchase similar annuity contracts and (2) of the amount of $1,000,000 paid by petitioner to a so-called “employees’ profit-sharing trust.”
In the deficiency notices…
Also in this document: Dissent.
2Cases cited11 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- New Colonial Ice Co. v. HelveringSupreme Court of the United States · 1934
- Old Colony Trust Co. v. CommissionerSupreme Court of the United States · 1929
- Botany Worsted Mills v. United StatesSupreme Court of the United States · 1929
- Bogardus v. CommissionerSupreme Court of the United States · 1937
6 more not listed; retrieve them via the Exa API.
3Cited by34 opinions
- Commissioner of Internal Revenue v. Lincoln Electric Co.Court of Appeals for the Sixth Circuit · 1949
- Surface Combustion Corp. v. CommissionerUnited States Tax Court · 1947
- Lincoln Electric Co. Employees' Profit-Sharing Trust v. CommissionerUnited States Tax Court · 1950
- Moore v. CommissionerUnited States Tax Court · 1946
- Weil Clothing Co. v. CommissionerUnited States Tax Court · 1949
29 more not listed; retrieve them via the Exa API.