Emory v. Commissioner
United States Tax Court
Petitioner, Burde, and Weiss each held a one-third interest in a bath oil formula which petitioner invented. They transferred said formula to a partnership consisting of petitioner, Burde's wife, and Weiss' wife, in exchange for a royalty.
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Petitioner, Burde, and Weiss each held a one-third interest in a bath oil formula which petitioner invented. They transferred said formula to a partnership consisting of petitioner, Burde's wife, and Weiss' wife, in exchange for a royalty. The assets of the transferee partnership were subsequently transferred to a corporation and petitioner, Burde's wife, and Weiss' wife received 80 percent of the transferee corporation's outstanding capital stock; the transferee corporation also assumed the royalty agreement. Held, the transfer of the bath oil formula to the partnership was not a transfer of…
1Opinion of the Court
Fay, Judge:
Respondent determined a deficiency in petitioners’ Federal income tax for the taxable year 1958 in the amount of $2,739.88.
The sole issues for decision are (1) whether royalty income received by Martin F. Emory is ordinary income or long-term capital gain pursuant to section 1235 of the Internal Revenue Code of 1954; or, (2) whether, alternatively, the royalty received by Emory is long-term capital gain pursuant to section 1231 of the Internal Revenue Code of 1954.
FINDINGS OF FACT
Some of the facts were stipulated, and the stipulation of facts and the exhibits attached thereto are…
2Cases cited3 opinions
- 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
- Burde v. CommissionerUnited States Tax Court · 1964
- Soffron v. CommissionerUnited States Tax Court · 1961
3Cited by1 opinion
- Emory v. CommissionerUnited States Tax Court · 1967