State Fish Corp. v. Commissioner
United States Tax Court
Petitioner's predecessors in title had purchased the subject business and goodwill protected by a covenant not to compete under such circumstances that the covenant was nonseverable and taken to insure the beneficial enjoyment of the goodwill.
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Petitioner's predecessors in title had purchased the subject business and goodwill protected by a covenant not to compete under such circumstances that the covenant was nonseverable and taken to insure the beneficial enjoyment of the goodwill. Suit for breach of the covenant resulted in a verdict and judgment for uncharacterized damages in the amount of $ 10,000, interest thereon in the amount of $ 2,835, and costs and disbursements of $ 460.63, which total of $ 13,295.63 was compromised and settled on payment of $ 12,250, all of which was determined by respondent to be taxable as recompense…
1Opinion of the Court
FORRESTER, Judge:
Respondent bas determined an income tax deficiency in tbe amount of $3,100.50 for petitioner’s fiscal year ended September 30,1960. Tbe only issue is whether $12,250 received by petitioner on July 22, 1960, in settlement of a judgment in its favor is a return of capital or is ordinary income. In bis deficiency notice, respondent determined the gross amount received to be $13,295.63, but bas since conceded that tbe correct figure is $12,250.
FINDINGS OF FACT
Some of tbe facts have been stipulated and are so found.
Tbe petitioner is a New York corporation whose principal office…
2Cases cited22 opinions
- Commissioner v. Glenshaw Glass Co.Supreme Court of the United States · 1955
- United States v. Safety Car Heating & Lighting Co.Supreme Court of the United States · 1936
- Raytheon Production Corp. v. Commissioner of Int. Rev.Court of Appeals for the First Circuit · 1944
- Kieselbach v. CommissionerSupreme Court of the United States · 1943
- Michaels v. CommissionerUnited States Tax Court · 1949
17 more not listed; retrieve them via the Exa API.
3Cited by27 opinions
- Bent v. CommissionerUnited States Tax Court · 1986
- Fono v. CommissionerUnited States Tax Court · 1982
- State Fish Corp. v. CommissionerUnited States Tax Court · 1967
- James Alderson v. United StatesCourt of Appeals for the Ninth Circuit · 2012
- Parker v. United StatesUnited States Court of Claims · 1978
22 more not listed; retrieve them via the Exa API.