Spector v. Commissioner
United States Tax Court
Held, although written agreements provided for quaranteed payments to petitioner in liquidation of his purported interest in a partnership, petitioner had offered strong proof that the payments were actually for the sale of his interest in another partnership to unrelated third parties, and thus constituted capital gains.
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Held, although written agreements provided for quaranteed payments to petitioner in liquidation of his purported interest in a partnership, petitioner had offered strong proof that the payments were actually for the sale of his interest in another partnership to unrelated third parties, and thus constituted capital gains. Held, further, legal expenses incurred in connection with a divorce settlement agreement were allocable pro rata among cash and other properties received and the portion allocable to cash was nondeductible.
1Opinion of the Court
Tannenwald, Judge:
Respondent determined deficiencies in petitioner’s income tax as follows:
Year Income tax
1972 . $4,709
1973 . 12,734
The issues for decision are:(1) Whether certain payments received by petitioner upon disposition of his interest in a partnership are ordinary income or capital gains; and(2) Whether a pro rata share of legal expenses incurred by petitioner in connection with a divorce settlement agreement is allocable to cash received as part of the settlement and, if so, whether that share is deductible.
FINDINGS OF FACT
Some of the facts have been stipulated. The stipulation of…
2Cases cited29 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- United States v. GilmoreSupreme Court of the United States · 1963
- Margit Sigray Bessenyey v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1967
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
- Danielson v. CommissionerUnited States Tax Court · 1965
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3Cited by44 opinions
- Buffalo Tool & Die Mfg. Co. v. CommissionerUnited States Tax Court · 1980
- Coleman v. CommissionerUnited States Tax Court · 1986
- Fono v. CommissionerUnited States Tax Court · 1982
- Bernard D. Spector v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1981
- Estate of Durkin v. CommissionerUnited States Tax Court · 1992
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