Macdonald v. Comm'r
United States Tax Court
C.F.U. granted nonexclusive licenses in patents which it held. C.F.U. then sold its remaining interests in the patents to petitioners. Petitioners then sold all their rights to their controlled corporation. Held, that petitioners transferred all substantial rights which they held in the patents, and thus the amounts they received qualify as capital gains.
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C.F.U. granted nonexclusive licenses in patents which it held. C.F.U. then sold its remaining interests in the patents to petitioners. Petitioners then sold all their rights to their controlled corporation. Held, that petitioners transferred all substantial rights which they held in the patents, and thus the amounts they received qualify as capital gains. Held, further, that the contract right to receive a certain number of dollars per foot of hardboard produced had no ascertainable fair market value in 1961, and the transaction is an open one.
1Opinion of the Court
DawsoN, Judge:
In these consolidated cases respondent determined the following Federal income tax deficiencies:
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Pursuant to leave granted at the trial, respondent claims the following increased deficiencies:
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The first issue for decision is whether transfers by petitioners of all their rights in certain patents constituted' a sale of either capital assets held for more than 6 months or of section 1231 assets, the gain from which is taxable to petitioners as long-term capital gain, or whether the transfers were something less than a sale, thus causing the gain to be…
2Cases cited19 opinions
- Waterman v. MacKenzieSupreme Court of the United States · 1891
- Burnet v. LoganSupreme Court of the United States · 1931
- Beck Chemical Equipment Corp. v. CommissionerUnited States Tax Court · 1957
- Philadelphia Park Amusement Co. v. United StatesUnited States Court of Claims · 1954
- Bell Intercontinental Corporation v. The United StatesUnited States Court of Claims · 1967
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3Cited by1 opinion
- Macdonald v. Comm'rUnited States Tax Court · 1971