Avery v. Commissioner
United States Board of Tax Appeals
The petitioner during a period of about seventeen years procured about twelve patents on inventions developed outside his regular hours of employment. Certain inventions led to his employment by a manufacturer of calculating machines and sale to such employer of two inventions for which application for patent had been made prior to his employment. One was purchased by the employer in 1935 for $30,000, payable in installments over a period of years.
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The petitioner during a period of about seventeen years procured about twelve patents on inventions developed outside his regular hours of employment. Certain inventions led to his employment by a manufacturer of calculating machines and sale to such employer of two inventions for which application for patent had been made prior to his employment. One was purchased by the employer in 1935 for $30,000, payable in installments over a period of years. In addition he sold another patent and granted certain rights in two other patents, from one of which he has received royalties since 1932. Held,…
1Opinion of the Court
*541OPINION.
Arnold:
The question involved is whether the gain of $4,500 and $3,300 realized by petitioner in 1938 and 1939, respectively, from the sale of Patent No. 1,910,738 in 1935 is taxable as long-term capital gain to the extent of 50 percent, as contended by petitioner, or as ordinary gain in its entirety, as contended by respondent. The amount of the gain is not in dispute.
Section 117 (a) (1) of the Revenue Act of 1938 provides in part as follows:
* * * The term “capital assets” means property held by the taxpayer (whether or not connected with his trade or business), but does not include *…
2Cases cited1 opinion
- Higgins v. CommissionerSupreme Court of the United States · 1941
3Cited by12 opinions
- Green v. Comm'rUnited States Tax Court · 1984
- Beach v. ShaughnessyDistrict Court, N.D. New York · 1954
- Lockhart v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1958
- Harris v. CommissionerUnited States Tax Court · 1990
- Martyr v. CommissionerUnited States Tax Court · 1990
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