bonus

A bonus is not proceeds from the sale of property, but payment in advance for oil and gas to be extracted, and is therefore taxable income. As such it is a part of the 'gross income from the property' as the phrase is used in section 204(c)(2) to designate the base for the application of the percentage deduction.

Something over and above, something additional, by way of compensation for something done or omitted; something not a gratuity, but beyond what is regularly due. 16 Wal. 471; 24 Conn. 154. A premium paid to a grantor or vendor or donated sum beyond strict legal right. A consideration given for what is received. Extraordinary profit accruing in the operations of a stock company or private corporation. 10 Ves. 185; 7 Sim. 634; 2 Spence, Eq. Jur. 569. An additional premium paid for the use of money beyond the legal interest. 2 Pars, Cont. 391. In its original sense of "good," the word was formerly much used. Thus, a jury was to be composed of twelve good men (boni homines) (3 Bl. Comm. 349), bonus judex (a good judge) (Co. Litt. 246). An extra or donated sum beyond strict legal right. BONUS JUDEX SECUNDUM AEQUUM et bonum judicat, et aequitatem strfcto Juri praefert. A good judge decides according to justice and right, and prefers equity to strict law. Co. Litt. 24; 4 Term R. 344; 2 Q. B. 837; Broom, Leg. Max. (3d London Ed.) 77.

A premium paid to a grantor or vendor. A sum exacted by the state from a corporation as a consideration for granting a charter; in such case it is clearly distinguished from a tax; Baltimore & O. R. Co. v. Maryland, 21 Wall. (U. S.) 456, 22 L. Ed. 678; Com. v. Transp. Co., 107 Pa. 112. A consideration given for what is received. Extraordinary profit accruing in the operation of a stock company or private corporation. 10 Ves. Ch. 185; 7 Sim. 634; 2 Spence, Eq. Jur. 569. An additional premium paid for the use of money beyond the legal interest. Mechanics' & Working Men's Mut. Sav. Bank & Bldg. Ass'n of New Haven v. Wilcox, 24 Conn. 147. It it not a gift or gratuity, but is paid for some services or consideration and is in addition to what would ordinarily be given; Kenicott v. Wayne County, 16 Wall. (U. S.) 452, 21 L. Ed. 319. In its original sense of good the word was formerly much used. Thus, a jury was to be composed of twelve good men (boni homines); 3 Bla. Com. 349; bonus judex (a good judge). Co. Litt. 246.

1. Lat. Good. Bona fldes. Good faith. See Fides. Boni judieis. See Judex, 3, Boni, etc. 2. Eng. (1) Not a gift or gratuity, but a sum paid for services, or upon a consideration in addition to or in excess of that which would ordinarily be given.5 A State may exact a bonus for the grant of a franchise, payable in advance or in futuro (as, one-fifth of the fare pa^d by passengers to a railroad company), although it affects the charge which the donee of the franchise will have to exact. Such bonus differs in principle from a tax on transportation between States, which is an interference and regulation of commerce.' (2) A premium paid for the use of money beyond the legal rate of interest. Although one portion of the sum be called interest and another portion a bonus, the contract is still usurious.^ Usury laws cannot be evaded by an understanding 1 National Bank of the Republic v. City of St. Joseph, 31 F. E. 219 (1887), oases, Wallace, J. " Holmes v. City of Shreveport, 31 F. E. 181 (1887) Boarman, J. 'Anthony v. County of Jasper, 101 U. S. 699 (1879), Waite, C. J. * Loan Association v. Topfeka, 20 Wall. 658-67 (1874), cases. Miller, J.; Parkersburg v. Brown, 106 U. S. 600 (1882). See generally Phelps v. tewiston, 15 Blatch. 151-53 (t8T8); Smith v. Ontario, ib. 269 (1878); Stewart v. Lansing, ib. S87 (1878); Commonwealth ex rel. Whelen V. Httsburgh, 88 Pa. 66, 81 (1878); Pierce, Railroads, 87-109, cases; 26 Am. Law Eeg. 209-22, 608-20 (1878), cases. ' Kenioott u. The Supervisors, 16 Wall. 471 (1872), Hunt, J. • Baltimore & Ohio E. Co. v. Maryland, 21 Wall. 473, which assumes the distinctness of a contract for the payment of additional interest as a bonus.''

I. A premium given for a loan. v. secundum aequum et bonum judicat, et juri prsefert: a good judge decides and good, and prefers equity to strict law.

contracts. A premium paid to a grantor or vendor, as, the bank paid a bonus to the state for its charter; a consideration given for what is received.