Kaiser v. Glenn

The issue in this case is whether a certain contract of sale between partners and a corporation resulted in a sale *552.of their partnership interests or a sale of partnership assets. It is agreed that if the sale were of partnership assets, the gain would be taxable to the partners as ordinary income; if the sale were of partnership interests, the gain would be taxable as capital gain under Section 117 of the Internal Revenue Code, 26 U.S.C. A. § 117.

Appellants, as partners, entered into a contract with a corporation for the sale of all of their interest in the partnership, in which were…