Utter-Mckinley Mortuaries, a Corporation v. Commissioner of Internal Revenue

JAMES ALGER FEE, Circuit Judge.

Utter-McKinley Mortuaries, petitioner, is a corporation which has owned, leased and operated mortuaries from 1929 to date throughout the County of Los An-geles. The question here arises over the disallowance as a deduction of the amount of rent paid by it during the years 1944, 1945 and 1946 to Maytor H. McKinley who was its President and a Director and who owned seventy-five per cent of the stock of petitioner and who held legal title of all the balance of its stock in trust for a former wife. During the years 1943 and 1944, petitioner, desiring to expand into…