Litvak v. Commissioner
United States Tax Court
The taxpayer, a motion picture director, purchased a literary property, expecting to sell it to an independent motion picture producer and to direct a picture based upon the story. He was not a dealer in literary properties.
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The taxpayer, a motion picture director, purchased a literary property, expecting to sell it to an independent motion picture producer and to direct a picture based upon the story. He was not a dealer in literary properties. Held, petitioner did not hold the literary property "primarily for sale to customers in the ordinary course of his trade or business" within the meaning of section 117 (a) (1) (A) of the Internal Revenue Code of 1939, and the gain derived by him upon sale of the story must be treated as capital gain. Fred MacMurray, 21 T. C. 15.
1Opinion of the Court
OPINION.
Raum, Judge:
The question for decision is whether petitioner derived capital gain, rather than ordinary income, upon the sale of the literary property, “Sorry, Wrong Number.” The only statutory provision relied upon by the Commissioner is section 117 (a) (1) (A) of the Internal Revenue Code of 1939, which defines “capital assets” to mean “property held by the taxpayer (whether or not connected with his trade or business),” but not to include “* * * property held by the taxpayer primarily for sale to customers in the ordinary course of his trade or business.” At the end of the trial,…
2Cases cited1 opinion
- MacMurray v. CommissionerUnited States Tax Court · 1953
3Cited by1 opinion
- Litvak v. CommissionerUnited States Tax Court · 1954