Tax Court Provides List of Factors to Consider in Determining the Appropriate Amount of Owners’ Compensation

Business Valuation Update BVLaw
Legal and Court Case Update
April 5, 1995
3732 Boat Building and Repairing
federal taxation

Mad Auto Wrecking, Inc. v. CIR
T.C. Memo. 1995-153
US
Federal Court
United States Tax Court
Laro

Summary

The Tax Court considered a list of 14 factors in determining whether compensation to a business owner was reasonable and thus deductible under IRC sec. 162.

See Also

Mad Auto Wrecking, Inc. v. CIR

The Tax Court considered a list of fourteen factors in determining whether compensation to a business owner was reasonable and thus deductible under IRC sec. 162. The factors included employee compensation, scope of employee's work, comparison to salaries ...