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Posts Tagged ‘Multi-Factor Test’

Tax Court Finds Compensation Paid to Shareholder-Employees Reasonable

Published: July 28th, 2016

By: Stephen R. Looney

In Johnson, Inc.,[1] the Tax Court held that the amounts paid to the shareholder-employees of a C corporation constituted reasonable compensation deductible under Section 162 and that amounts paid by the taxpayer-corporation to an entity controlled by two of its shareholders was deductible as an ordinary and necessary business expense under Section 162. Facts of […]