Lawton v. Commissioner
United States Tax Court
1. Held, respondent erred in determination of good will as a factor in liquidation of a corporation. 2. Respondent's determination that petitioner did not make bona fide gifts of stock sustained for lack of proof. 3. Held, during the taxable years a bona fide partnership, composed of petitioner, his two adult sons, and another, existed in respect of a tool-manufacturing business, where petitioner contributed capital and services and the others contributed services…
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1. Held, respondent erred in determination of good will as a factor in liquidation of a corporation. 2. Respondent's determination that petitioner did not make bona fide gifts of stock sustained for lack of proof. 3. Held, during the taxable years a bona fide partnership, composed of petitioner, his two adult sons, and another, existed in respect of a tool-manufacturing business, where petitioner contributed capital and services and the others contributed services constituting a substantial factor in the production of the income; held, further, the partnership is not recognized as to…
1Opinion of the Court
OPINION.
Van Foss AN, Judge:
The first issue is whether or not there should be included in the value of the assets distributed on liquidation of the corporation an amount representing the value of good will and, if so, in what amount.
In computing the value of the assets at the time of dissolution the officers of the corporation did not include any amount representing good will. In his notice of deficiency the respondent determined that the corporation possessed good will, the value of which he computed according to the capitalization of earnings method. This method has received approval in…
2Cases cited5 opinions
- Commissioner v. TowerSupreme Court of the United States · 1946
- Lusthaus v. CommissionerSupreme Court of the United States · 1946
- Meehan v. ValentineSupreme Court of the United States · 1892
- MacDonald v. CommissionerUnited States Tax Court · 1944
- Ennis v. CommissionerUnited States Tax Court · 1945
3Cited by27 opinions
- Apt v. BirminghamDistrict Court, N.D. Iowa · 1950
- Wilmot Fleming Engineering Co. v. CommissionerUnited States Tax Court · 1976
- Moore v. CommissionerUnited States Tax Court · 1946
- Cullen v. CommissionerUnited States Tax Court · 1950
- Shunk v. CommissionerUnited States Tax Court · 1948
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