Holman v. Commissioner
United States Tax Court
Petitioners were expelled from their law partnership and, for their interest in accounts receivable and charges for unbilled services, were paid installments plus interest over an 18-month period.
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Petitioners were expelled from their law partnership and, for their interest in accounts receivable and charges for unbilled services, were paid installments plus interest over an 18-month period. Held, the payments to petitioners for their interests in accounts receivable and charges for unbilled services are taxable as ordinary income rather than capital gains, secs. 736(a) and 751, I.R.C. 1954. Held, further, the difference between the amounts received by petitioners from the partnership and the face amounts of the accounts receivable plus the charges for unbilled services is not…
1Opinion of the Court
OPINION
Featherston, Judge:
In these consolidated proceedings, respondent determined the following deficiencies in petitioners’ Federal income taxes:
DocketNo. 1145-73 DocketNo. 1159-73
Year Amount Year Amount
1969 - $1,241.46 1969 _ $2,775.00
1970 - 1,439.00 1970_ 1,784.00
Other items having been settled by the parties, only two issues remain for decision:(1) Whether payments received by petitioners upon their expulsion from a law partnership are taxable as ordinary income pursuant to sections 7361 and 751 or as capital gains pursuant to section 731.(2) Whether petitioners' incurred a deductible…
2Cases cited10 opinions
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Hort v. CommissionerSupreme Court of the United States · 1941
- Lester Wm. Roth and Gertrude F. Roth v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1963
- Smith v. CommissionerUnited States Tax Court · 1962
5 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Estate of Quirk v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1991
- Steffen v. CommissionerUnited States Tax Court · 1978
- Estate of Thomas P. Quirk, Deceased, Gregory J. Quirk, Norman D. Rollins, Co-Administrators, Mary C. Quirk, (90-1129) v. Commissioner of Internal Revenue, John P. Lawler, Eileen F. Lawler, Michael J. Skelly, Georgette T. Skelly, Karim A. Abood, Donna H. Abood, Felix E. Matusky, Florence P. Matusky v. Commissioner of Internal Revenue, (90-1183/1185/1186/1187)Court of Appeals for the Sixth Circuit · 1991
- Milliken v. CommissionerUnited States Tax Court · 1979
- Holman v. CommissionerCourt of Appeals for the Ninth Circuit · 1977
7 more not listed; retrieve them via the Exa API.