- 9 - The independent salespersons do not receive wages, salary, sales commissions, or other fees or incentives from ADI or from the manufacturers or lenders relating to manufactured homes that are sold. Rather, for their income the independent salespersons retain 100 percent of the retail price markup from the manufacturer’s wholesale price. In the written agreements ADI enters into with the independent salespersons, the independent salespersons expressly give up their right to receive any of the manufacturers’ retail incentive payments and acknowledge that ADI is to receive all incentive payments. On petitioners’ timely filed corporate Federal income tax returns for their tax year ending September 30, 2000, petitioners deducted, among other things, as section 162 ordinary and necessary business expenses $243,350 in sales lot lease payments and $22,387 in miscellaneous expenses incurred during the year. The $22,387 miscellaneous expenses consist of $16,184 ADI paid to ship model manufactured homes from closed sales lots to other sales lots, $3,423 ADI paid to avoid a sheriff’s seizure relating to delinquent State taxes a former independent salesperson had not paid, $2,500 ADI paid for repairs on a model manufactured home, and $280 ADI paid for cleaning a water-damaged carpet in a model manufactured home.Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011