Friedlaender v. Commissioner
United States Tax Court
Petitioner opened a men's haberdashery store in the last part of September 1946 and sold it for cash and stock in the purchasing corporations on April 7, 1947. Held, proceeds received by petitioner for goodwill not long-term capital gains since record does not prove existence of goodwill for 6 months prior to sale.
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Petitioner opened a men's haberdashery store in the last part of September 1946 and sold it for cash and stock in the purchasing corporations on April 7, 1947. Held, proceeds received by petitioner for goodwill not long-term capital gains since record does not prove existence of goodwill for 6 months prior to sale. Held, further, (a) petitioner's valuation of the stock received sustained; (b) an ordinary loss allowed to the extent of a $ 3,000 discount granted in the sale of the merchandise inventory; (c) disallowance of rent expense sustained; and (d) amount and capital nature of specific…
1Opinion of the Court
OPINION.
Kekn, Judge:
The first and major issue presented for decision herein is whether the petitioner realized long-term capital gain or ordinary income upon the sale of his men’s haberdashery business. The respondent based the determination of the deficiency with respect to this issue upon four alternative theories, namely, that the amount of the payment to petitioner in excess of the value of the tangible assets of the store was either: (a) To induce petitioner to enter into a contract; (b) advance compensation for services to be rendered; (c) rent; (d) short-term capital gain on the sale…
2Cases cited5 opinions
- Williams v. McGowanCourt of Appeals for the Second Circuit · 1945
- MacDonald v. CommissionerUnited States Tax Court · 1944
- Estate of Bluestein v. CommissionerUnited States Tax Court · 1950
- Estate of Maddock v. CommissionerUnited States Tax Court · 1951
- Perkins v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1942
3Cited by9 opinions
- Copland v. Department of TaxationWisconsin Supreme Court · 1962
- Solitron Devices, Inc. v. CommissionerUnited States Tax Court · 1983
- District of Columbia v. Acf Industries, IncorporatedCourt of Appeals for the D.C. Circuit · 1965
- Copland v. Department of TaxationWisconsin Supreme Court · 1962
- Estate of Laff v. CommissionerUnited States Tax Court · 1979
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