King Amusement Co. v. Commissioner
United States Board of Tax Appeals
Petitioner paid $50,000 to two of its stockholders in 1920, in consideration of their becoming guarantors under a renewal lease to begin May 1, 1926. Held, that this was not an allowable deduction from gross income in 1920 under the provisions of section 234(a)(1), Revenue Act of 1921.
1Opinion of the Court
KING AMUSEMENT CO., PETITIONER, v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT.
King Amusement Co. v. Commissioner
Docket No. 17921.
United States Board of Tax Appeals
15 B.T.A. 566; 1929 BTA LEXIS 2823;
February 25, 1929, Promulgated
Petitioner paid $50,000 to two of its stockholders in 1920, in consideration of their becoming guarantors under a renewal lease to begin May 1, 1926. Held, that this was not an allowable deduction from gross income in 1920 under the provisions of section 234(a)(1), Revenue Act of 1921.
Frederick L. Pearce, Esq., for the petitioner.
E. W. Shinn, Esq., for the respondent.
2Cases cited1 opinion
- King Amusement Co. v. CommissionerUnited States Board of Tax Appeals · 1929