LeVine v. Commissioner
United States Tax Court
1. The petitioners were equal partners in an offset printing business which they sold to a corporation wholly owned by them at a stated price exceeding the value of the tangible partnership assets by $ 100,000. During the 28 months of its existence the partnership had acquired and trained a highly skilled group of employees, developed new and efficient techniques, and showed rapidly growing and substantial profits.
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1. The petitioners were equal partners in an offset printing business which they sold to a corporation wholly owned by them at a stated price exceeding the value of the tangible partnership assets by $ 100,000. During the 28 months of its existence the partnership had acquired and trained a highly skilled group of employees, developed new and efficient techniques, and showed rapidly growing and substantial profits. Held, on the facts the partnership transferred to the corporation goodwill and other intangibles of a value of $ 45,000. 2. The petitioners on January 15, 1951, revised upward…
1Opinion of the Court
OPINION.
ARundell, Judge:
The principal question in this case concerns the tax treatment of the proceeds from the sale of the assets of a partnership. The petitioners were equal partners in the vendor partnership and were also the only stockholders in the purchasing corporation.
Bespondent does not question the separate entities of the parties to the sale nor does he contest the fact that a sale has taken place. He agrees that the valuation placed upon the tangible assets of the partnership was reasonable and that gains on the sale of the tangibles are properly treated as capital gains.
The…
2Cases cited3 opinions
- Bouche v. CommissionerUnited States Tax Court · 1952
- Stephan Et Ux. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1952
- Stephan v. CommissionerUnited States Tax Court · 1951
3Cited by4 opinions
- Solitron Devices, Inc. v. CommissionerUnited States Tax Court · 1983
- District of Columbia v. Acf Industries, IncorporatedCourt of Appeals for the D.C. Circuit · 1965
- LeVine v. CommissionerUnited States Tax Court · 1955
- Solitron Devices, Inc. v. CommissionerUnited States Tax Court · 1983