Martin v. Commissioner
United States Tax Court
1. Held, that the amount received by a partnership, of which the petitioners were general partners, representing a percentage of the proceeds from the sale by the play authors of the motion-picture rights to the story "The Idyll of Miss Sarah Brown," constituted ordinary business income, rather than capital gain, to the partnership, and hence to the partners. 2. Held, further, that the petitioners' interest in the motion-picture, radio, and television rights in the musical…
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1. Held, that the amount received by a partnership, of which the petitioners were general partners, representing a percentage of the proceeds from the sale by the play authors of the motion-picture rights to the story "The Idyll of Miss Sarah Brown," constituted ordinary business income, rather than capital gain, to the partnership, and hence to the partners. 2. Held, further, that the petitioners' interest in the motion-picture, radio, and television rights in the musical play "The Boy Friend," was a capital asset and and that the gain from the sale thereof constituted long-term capital gain…
1DissentTaNNENWAld, J.
I have no quarrel with my colleagues in the majority insofar as their conclusion that petitioners’ receipts from the sale of the motion-picture rights to “The Idyll of Miss Sarah Brown” is concerned. Such receipts in my opinion clearly constituted ordinary income. My difficulties relate to the long-term capital gains treatment accorded petitioners’ receipts from the sale of the movie rights to “The Boy Friend” and “Stay Away Joe.” I think these receipts should also be held to constitute ordinary income to petitioners.
Fortunately, there is no disagreement between the parties that the…
2Cases cited8 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Commissioner v. BrownSupreme Court of the United States · 1965
- Malat v. RiddellSupreme Court of the United States · 1966
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
- Commissioner of Internal Revenue v. José FerrerCourt of Appeals for the Second Circuit · 1962
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