- 17 - intended, they were unreasonable in amount for the services he rendered. Respondent argues that these excess amounts are not deductible under section 162(a)(1). B. Summary; Conclusions In determining the maximum reasonable compensation for Jack’s services for the years in issue, we have considered the relevant factors listed in Owensby & Kritikos, Inc. v. Commissioner, 819 F.2d 1315, 1323 (5th Cir. 1987), affg. T.C. Memo. 1985-267. Both parties presented expert witness reports and testimony on the applicability of the relevant factors to the instant case. While we do not find the experts’ conclusions 4(...continued) OPENING STATEMENT BY COUNSEL ON BEHALF OF THE RESPONDENT MS. CALKINS: Your Honor, this case presents two questions: whether a portion of payments made to Mr. Brewer in 1995 and 1996 and deducted as officer’s compensation by the Petitioner are actually disguised dividends. * * * The second question, respondent stated, was whether the deducted amounts “are reasonable in amount.” The final sentence of respondent’s opening statement is as follows: It is Respondent’s position that in spite of Mr. Brewer’s contributions to Petitioner during the years at issue, the payments to him over and above what Respondent has allowed in the trial memorandum should be disallowed as disguised dividends. Thirdly, our search of the transcript shows that, notwithstanding respondent’s clear statements at the start of the trial, petitioner did not object, or otherwise comment on this matter, at that time or at any other time during the 3-day trial.Page: Previous 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 Next
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