Luna v. Commissioner
United States Tax Court
A lump-sum payment received by petitioner from an insurance company in 1959 in settlement of petitioner's right to receive renewal commissions on special type insurance policies, conceived by petitioner and written by the insurance company, issued prior to termination of petitioner's employment contract with the insurance company in 1955, was taxable to petitioners as ordinary income.
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A lump-sum payment received by petitioner from an insurance company in 1959 in settlement of petitioner's right to receive renewal commissions on special type insurance policies, conceived by petitioner and written by the insurance company, issued prior to termination of petitioner's employment contract with the insurance company in 1955, was taxable to petitioners as ordinary income. The payment did not represent proceeds from the sale or exchange of a capital asset or an interest in a joint venture.
1Opinion of the Court
DeeNNEn, Judge:
Respondent determined a deficiency in petitioners’ income tax for the taxable year 1959 in the amount of $10,044.91.
The only issue for decision is whether the amount of $45,000 received by petitioner Hubert M. Luna (hereafter sometimes referred to as petitioner) from Pioneer Life & Casualty Co., Inc. (hereafter referred to as Pioneer), in 1959 as consideration for the release of rights to which petitioner was entitled under a contract with Pioneer, constituted capital gain or ordinary income.
Petitioner offered no evidence with respect to, and does not mention on brief, another…
2Cases cited13 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Beck Chemical Equipment Corp. v. CommissionerUnited States Tax Court · 1957
- Estate of Craig M. Smith, Deceased, Ruth E. Smith v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1963
- Nat Holt and Blanche Holt, Husband and Wife v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
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3Cited by120 opinions
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- Tifd Iii-E, Inc. v. United States of America, Docket No. 05-0064-CvCourt of Appeals for the Second Circuit · 2006
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