Lindsey-Long Coal & Lumber Co. v. Commissioner

Board of Tax Appeals

Lindsey-Long Coal & Lumber Co. v. Commissioner

5 B.T.A. 243, 1926 BTA LEXIS 2897

CourtUnited States Board of Tax Appeals

DecidedOctober 29, 1926

DocketDocket Nos. 11279, 11669.

StatusPublished

Cited by1 cases

This text of 5 B.T.A. 243 (Lindsey-Long Coal & Lumber Co. v. Commissioner) is published on Counsel Stack Legal Research, covering United States Board of Tax Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Lindsey-Long Coal & Lumber Co. v. Commissioner, 5 B.T.A. 243, 1926 BTA LEXIS 2897 (bta 1926).

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Opinion

[245]*245OPINION.

Smith :

The amounts of compensation claimed as deductions from gross income in the petitioner’s tax returns for 1920, 1921, and 1922, were payments of salaries to officers rendering services to' the company during thosé years. They were not, in our opinion, unreasonable deductions.

During the year 1920, Lindsey and Long each owned approximately one-third of the capital stock of the corporation. During the year 1921 they acquired Whiteside’s stock, and at the close of the year they owned all of the stock of the corporation, but in what proportion is not in evidence. We can not make any finding that the amounts paid were in effect distributions of profits. In the light of the record, we can not do otherwise than to find that the salaries paid to officers were ordinary and necessary expenses of doing business, and as such were deductible from gross income.

Judgment will be entered on 15 days’ notice, under Rule 50.

Trammell dissents.

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[245]*245OPINION.

Smith :

The amounts of compensation claimed as deductions from gross income in the petitioner’s tax returns for 1920, 1921, and 1922, were payments of salaries to officers rendering services to' the company during thosé years. They were not, in our opinion, unreasonable deductions.

During the year 1920, Lindsey and Long each owned approximately one-third of the capital stock of the corporation. During the year 1921 they acquired Whiteside’s stock, and at the close of the year they owned all of the stock of the corporation, but in what proportion is not in evidence. We can not make any finding that the amounts paid were in effect distributions of profits. In the light of the record, we can not do otherwise than to find that the salaries paid to officers were ordinary and necessary expenses of doing business, and as such were deductible from gross income.

Judgment will be entered on 15 days’ notice, under Rule 50.

Trammell dissents.

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5 B.T.A. 243, 1926 BTA LEXIS 2897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lindsey-long-coal-lumber-co-v-commissioner-bta-1926.

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