- 7 - Respondent determined the amount of petitioner’s allowable deductions for reasonable compensation by use of statistics reflecting compensation for corporate officers in the equipment- leasing and real estate-rental business. Based on those statistics, respondent determined that petitioner was entitled to a deduction of $76,800 for each of the years 1995 and 1996 as reasonable compensation for the Valentes’ services to petitioner. The following schedule reflects respondent’s comparison between petitioner’s taxable income; adjusted taxable income (adjusted to not include net operating loss deductions, special deductions, and deductions for officer’s compensation); officer’s compensation; and the percentage of adjusted taxable income represented by officer compensation:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011