Reasonable Compensation Deduction Considered

Business Valuation Update BVLaw
Legal and Court Case Update
September 28, 2004
federal taxation
reasonable compensation

Beiner, Inc. v. CIR
T.C. Memo. 2004-219
US
Federal Court
United States Tax Court
Jonathan H. Sloat, Leslie Vanderwalt, Philip Garrett Panitz, Ryan D. Schaap
Martin Wertlieb
Laro

Summary

The U.S. Tax Court determined that payments made to a controlling shareholder in 1999 and 2000, which were deducted on the company’s tax returns under sec. 162, were reasonable and deductible for the 2000 tax year but not for the 1999 tax year.

See Also

Beiner, Inc. v. CIR

The U.S. Tax Court considered determined that payments made to a controlling shareholder in 1999 and 2000, which were deducted on the company’s tax returns under sec. 162, were reasonable and deductible for the 2000 tax year but not for the 1999 tax year.