Jessop v. Commissioner
United States Tax Court
Income -- Ordinary or Capital Gain. -- Petitioner gave an option providing for the sale to an individual of stock in a corporation at a cash price, and also providing for a contract of employment by the corporation for 5 years for a salary plus a commission on the corporation's magnet sales.
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Income -- Ordinary or Capital Gain. -- Petitioner gave an option providing for the sale to an individual of stock in a corporation at a cash price, and also providing for a contract of employment by the corporation for 5 years for a salary plus a commission on the corporation's magnet sales. Held, that the contract of employment was not part of the consideration for the sale of stock and the commission as well as the salary received during 1947 was compensation for services rendered and taxable as ordinary income. Held, further, that a lump sum received from the corporation in 1947 in…
1Opinion of the Court
OPINION.
Tietjens, Judge:
The two assignments of error raise a similar question as to the character of income received and will be discussed together. Petitioner has conceded that of the $17,549.42 and' $13,500 payments received in 1947, the amounts of $12,000 and $9,000, respectively, are properly allocable to compensation for personal services and as such taxable as ordinary income. This leaves for decision herein the question of whether the remaining amounts, namely, $5,549.42 received under the employment contract and actually attributable to a percentage on magnet sales during 1947, and…
2Cases cited6 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- Hort v. CommissionerSupreme Court of the United States · 1941
- Commissioner v. SmithSupreme Court of the United States · 1945
- Carter v. CommissionerUnited States Tax Court · 1947
- Commissioner v. SmithSupreme Court of the United States · 1945
1 more not listed; retrieve them via the Exa API.
3Cited by19 opinions
- Alexander v. CommissionerUnited States Tax Court · 1995
- Heyn v. CommissionerUnited States Tax Court · 1963
- Henry v. CommissionerUnited States Tax Court · 1974
- Tate v. KnoxDistrict Court, D. Minnesota · 1955
- Estate of Taracido v. CommissionerUnited States Tax Court · 1979
14 more not listed; retrieve them via the Exa API.