APPEAL OF HERON METAL BED CO.
Heron Metal Bed Co. v. Commissioner
Docket No. 3236.
United States Board of Tax Appeals
2 B.T.A. 305; 1925 BTA LEXIS 2452;
July 11, 1925, Decided Submitted June 18, 1925. *2452 John S. Fletcher, Esq., for the taxpayer.
R. P. Smith, Esq., for the Commissioner.
*306 Before STERNHAGEN, LANSDON, and LOVE.
The taxpayer appeals from a determination of a deficiency in income and profits tax of $4,140 for the calendar year 1919, resulting from the disallowance of a deduction for salary of its president.
FINDINGS OF FACT.
During the calendar year 1919 the taxpayer paid its president a salary of $9,000. The president performed substantial service during that year, the directors considered that such services were worth $9,000 in that year, and by a resolution duly adopted such salary was authorized. The Commissioner disallowed the deduction. The salary was reasonable.
DECISION.
The deficiency determined by the Commissioner is disallowed.