Arthur F. Brook and Ruth T. Brook v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Wire-O Binding Company, Inc.

J. JOSEPH SMITH, Circuit Judge:

Taxpayers Arthur F. and Ruth T. Brook petition for review of a decision of the Tax Court, Fay, Judge, T. C. Memo. 1964-285, holding installment payments on the sale of two contracts taxable as short term taxable gain. The Commissioner cross-petitions for review, seeking a holding that the assets in the hands of the purchasing corporation are non-depreciable. We find error and remand for treatment as long term capital gain of so much of the consideration as is attributable to the earlier contract.

Arthur Brook operated a proprietorship, Wire-0 Binding Co.,…