Wilmont Fleming Engineering Co. v. Commissioner
United States Tax Court
Partnership was dissolved and two partners sold assets of the partnership business to corporation which continued the business.
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Partnership was dissolved and two partners sold assets of the partnership business to corporation which continued the business. Held, no part of the sale price was attributable to goodwill or "deferred sales"; excess of sale price over book value was allocable to machinery and equipment; partners' gain from sale was ordinary income under secs. 735(a)(1) and 751(c) (effectively, recapture of accelerated depreciation under sec. 1245); and one partner is liable for additional tax under sec. 47, I.R.C. 1954.
1Opinion of the Court
OPINION
In these consolidated cases, we are presented with the following issues:(1) Whether Wilmot Fleming Engineering Co. properly computed its basis in machinery and equipment purchased from decedent and Wilmot in respect of which property the corporation claimed depreciation deductions for its fiscal years 1968,1969, and 1970 in excess of the respective amounts allowed therefor by respondent;(2) Whether decedent and Wilmot properly characterized their respective gain from the sale of their interests in partnership assets as capital gain; and(3) Whether, as a result of the aforementioned…
2Cases cited27 opinions
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
- Danielson v. CommissionerUnited States Tax Court · 1965
- Schmitz v. CommissionerUnited States Tax Court · 1968
- In Re the Accounting of BrownNew York Court of Appeals · 1926
- Albert H. And Doris G. Throndson v. Commissioner of Internal Revenue, Albert H. And Doris G. Throndson v. Commissioner of Internal Revenue, J. Leonard Schmitz and Alice Schmitz v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1972
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3Cited by1 opinion
- Wilmont Fleming Engineering Co. v. CommissionerUnited States Tax Court · 1976