Topek v. Commissioner
United States Tax Court
1. The taxpayers in 1943 accrued a bonus to their son and son-in-law as additional compensation for services in their business, but did not pay it until approved by the Salary Stabilization Unit in April 1944. The Commissioner disallowed its deduction as a business expense by virtue of section 24 (c), Internal Revenue Code.
Read the full summary
1. The taxpayers in 1943 accrued a bonus to their son and son-in-law as additional compensation for services in their business, but did not pay it until approved by the Salary Stabilization Unit in April 1944. The Commissioner disallowed its deduction as a business expense by virtue of section 24 (c), Internal Revenue Code. Held: (a) The amount paid to the son-in-law is deductible because a son-in-law does not qualify as a member of the taxpayer's family within the meaning of section 24 (b) (2) (D) and hence, condition (3) of section 24 (c) not being met, section 24 (c) does not operate to…
1Opinion of the Court
OPINION.
Johnson, Judge:
The Commissioner determined a deficiency in the income and victory tax for the calendar year 1943 of petitioner Fervel Topek (Docket No..11718) in the amount of $811.80, and of petitioner Sarah Topek (Docket No. 11719) in the amount of $811.80. The two proceedings, being identical as to issues and sums involved, were consolidated.
Originally, petitioners had three assignments of error, but one of them, the third, related to a deduction for depreciation, was withdrawn by petitioners, leaving only two, as follows:(1) Petitioners assail the Commissioner’s disallowance of…
2Cases cited7 opinions
- Posadas v. National City BankSupreme Court of the United States · 1936
- United States v. TynenSupreme Court of the United States · 1871
- District of Columbia v. HuttonSupreme Court of the United States · 1892
- Michael Flynn Mfg. Co. v. CommissionerUnited States Tax Court · 1944
- P. G. Lake, Inc. v. CommissionerUnited States Tax Court · 1944
2 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Julius Long Stern and Ellen v. Stern v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1954
- Ebberts v. CommissionerUnited States Tax Court · 1968
- De Boer v. CommissionerUnited States Tax Court · 1951
- Ace Heater Mfg. Co. v. CommissionerUnited States Tax Court · 1951
- De Boer v. CommissionerUnited States Tax Court · 1951
4 more not listed; retrieve them via the Exa API.