Chu v. Comm'r
United States Tax Court
Held, assignment of patent application was not productive of ordinary income within the provision of sec. 1239, I.R.C. 1954; such application was not property of a character subject to depreciation within the meaning of sec. 1239(b), whether considered in the light of Estate of William F. Stahl, 52 T.C. 591, or in the light of the reversal of that decision in part by the Court of Appeals, 442 F. 2d 324 (C.A. 7).
1Opinion of the Court
OPINION
Baum, Judge:
The issue for decision is whether the amounts received by Dr. Chu in 1962,1963,1964, and 1965, from the transfer of his 11/12 interest in the antenna patent application to Chu Associates, Inc., are taxable as ordinary income under section 1239,1.B.C. 1954,1 or as long-term capital gain. Section 1239 provides in part as follows:
SEC. 1239. GAIN FROM SALE OF CERTAIN PROPERTY BETWEEN SPOUSES OR BETWEEN AN INDIVIDUAL AND A CONTROLLED CORPORATION.(a) Tkeatment op Gain as Obdinaby Income. — In the ease of a sale or exchange, directly or indirectly, of property described in…
2Cases cited7 opinions
- Hershey Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1928
- United States Mineral Products Co. v. CommissionerUnited States Tax Court · 1969
- Hershey Mfg. Co. v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1930
- Estate of Stahl v. Comm'rUnited States Tax Court · 1969
- Speicher v. Comm'rUnited States Tax Court · 1957
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3Cited by1 opinion
- Chu v. Comm'rUnited States Tax Court · 1972