- 53 -
perspective of an independent investor. See RAPCO, Inc. v.
Commissioner, 85 F.3d 950, 954-955 (2d Cir. 1996), affg. T.C.
Memo. 1995-128.
1. Employee's Qualifications
An employee's superior qualifications for his or her
position with the business may justify high compensation. See
Charles Schneider & Co. v. Commissioner, supra at 152; Mayson
Manufacturing Co. v. Commissioner, 178 F.2d 115, 121 (6th Cir.
1949); Home Interiors & Gifts, Inc. v. Commissioner, 73 T.C.
1142, 1158 (1980).
By 1995, Dennis and Curtis had many years of experience in
the construction and logging industries. During the years at
issue, both Dennis and Curtis devoted themselves exclusively to
petitioner's business, and they worked up to 90 hours per week.
Dennis and Curtis performed all the executive and administrative
duties and assumed all the responsibilities for petitioner's
operations. Their experience and knowledge of petitioner's
construction, logging, and other diverse business activities made
them uniquely qualified for their positions with the business and
warrant high compensation.
2. Nature, Extent, and Scope of Employee's Work
An employee's position, duties performed, hours worked, and
general importance to the success of the company may justify high
compensation. See Charles Schneider & Co. v. Commissioner,
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