Rev. Rul. 70-253

A partner, under the terms of his partnership agreement, is required to pay out of his own personal funds the compensation of one of the employees of the partnership who performs a part of the duties delegated to the partner.

Held, the compensation paid to the employee is deductible by the partner as an ordinary and necessary business expense under section 162 of the Internal Revenue Code of 1954.

O.D. 947, C.B. 4, 137 (1921), is hereby superseded, since the position stated therein is set forth under the current statute and regulations in this Revenue Ruling.

¹ Prepared pursuant to Rev. Proc. 67-6, C.B. 1967-1, 576.