Legal Opinion

Burde v. Commissioner

United States Tax Court

Decided November 30, 1964No. Docket Nos. 1364-62, 1365-62PublishedCited by 15 opinions

Petitioners Max A. Burde and Bernard Weiss each acquired a one-third interest in a bath oil invention in consideration for their promise to assist the inventor in the development thereof. Because of the extent of their mutual activities in connection with the development of the invention, these three individuals held the invention as joint venturers.

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Petitioners Max A. Burde and Bernard Weiss each acquired a one-third interest in a bath oil invention in consideration for their promise to assist the inventor in the development thereof. Because of the extent of their mutual activities in connection with the development of the invention, these three individuals held the invention as joint venturers. Prior to the time the invention was reduced to practice, the joint venturers sold it to a partnership in which the inventor, Burde's wife, and Weiss' wife each held a one-third interest. Held: Section 1235 is inapplicable because the transfer…

1Opinion of the Court

Fay, Judge:

Respondent determined deficiencies in the income taxes of petitioners Max A. and Berthe C. Burde and petitioners Bernard and Peggy S. Weiss for the calendar year 1958 in the respective amounts of $7,215.48 and $7,093.14.

These proceedings have been consolidated.

The sole issue remaining for decision is whether the royalty payments received by petitioners Max A. Burde and Bernard Weiss in 1958 were taxable as long-term capital gain.1

FINDINGS OF FACT

Some of the facts have been stipulated, and the stipulation of facts, together with the exhibits attached thereto, is incorporated herein…

2Cases cited20 opinions

  1. Commissioner v. TowerSupreme Court of the United States · 1946
  2. Beck Chemical Equipment Corp. v. CommissionerUnited States Tax Court · 1957
  3. Dreymann v. Comm'rUnited States Tax Court · 1948
  4. Philbrick v. CommissionerUnited States Tax Court · 1956
  5. Tompkins v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1938

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3Cited by15 opinions

  1. Professional Services v. CommissionerUnited States Tax Court · 1982
  2. Green v. Comm'rUnited States Tax Court · 1984
  3. Max A. Burde and Berthe C. Burde v. Commissioner of Internal Revenue, Bernard Weiss and Peggy S. Weiss v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1965
  4. Newton Insert Co. v. CommissionerUnited States Tax Court · 1974
  5. Lansing v. CommissionerUnited States Tax Court · 1976

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