Show I Inco Income e Tax NO It 11 s paid ea constitute tute one of the largest larrest Items ot In the returns of many taxpayers To bo ai lowed such a deduction mu t con can conform form closely to the wording ot the by which It Is do- do de defined tined fined as a a reasonable tor or other othor compensation tion for per onal leeo rendered Th teat of deductibility deduct la 10 the th paid are and ond thoy are In tact fael purely for tor per onal aen Ices Amounts paid as con but not In fact a the tho price of sen I are not deduct deduct- deductible ible For o example an ostensible alary paid by a 0 corporation ma maybe be the of ot a 1 on stock This may bo the tho pro pro- pro procedure In the ease of A corpor corporation having few all of whom draw If in such uch a uso ea o tho salaries aro tn excels cot o ordinarily for similar cervices and the ex eee lve pi payments ments corre pond Or bear close relationship to OrI I of the officers or u It would som I that such ar not wholly for aen IC J red that the pa menta are a of earn earnings Ins upon stock ond subject to treatment as a a md d An ostensible salary ma be In of property for tor e ex example ample amplo where herc a partnership ut to a corporation the tbt partners agreeing to ren aln In Inthe tho of the corporation In uch uch cOle case It may bo found that the salaries paid the tha former part part- nera nelS are not m merely rely for but In part constitute payment tor tho of their business The amount of o the sl should be beI I treated by the tho a a 0 capi capital tal expenditure which Is 1 not de deductible and nd by the recipient as a apart part of the price A person ho claim a deduction deduc- deduc tion for ws see or alar paId him Ht C If hould report tho amount u Income Just a any other wages or alary roc ed or wages paid by a parent to a minor child who ho baa hao not been en anol allowed ed allon-ed control of hI whether earnings whether In consideration consideration tion of s or otherwise are not allowable deduction |