FindLaw | Find a Lawyer. Find Answers.

Library Search

• Executive Compensation Tax Issues ( January 1996 )
  Paul J. Hanley of Grimshaw & Harring, P.C.

  Section 162 of the Internal Revenue Code allows a deduction for ordinary and necessary business expenses, including reasonable compensation expenses for personal services. As might be expected, the concept of "reasonableness" is somewhat nebulous. In making this determination, courts have applied two tests: (1) the amount test, which analyzes whether the amount of compensation is reasonable in relation to the services performed, and (2) the intent test, which analyzes whether the money paid was intended as compensation.

• Eighth Circuit Allows Deduction for Certain Expenses of Corporate Acquisitions ( September 2000 )
  Walter A. Pickhardt of Faegre & Benson LLP

  This article reviews an Eight Circuit decision that allows for deduction of certain expenses of corporate acquisitions.