Big Four Industries, Inc. v. Commissioner
United States Tax Court
Award received in patent infringement litigation held to include, in addition to compensation for lost profits which is conceded to be taxable as ordinary income, (a) reimbursement for litigation expenses, which is taxable as ordinary income, and (b) compensation for injury to capital structure and goodwill which is taxable as capital gain to the extent that such compensation exceeds basis.
1Opinion of the Court
OPINION
Raum, Judge:
Respondent determined a deficiency in the income tax of petitioner in. the amount of $168,424.86 for the calendar year 1959. All of the fa,cts have been stipulated.
The sole issue is whether the respondent erred in determining that the entire amount of damages received by petitioner in a patent infringement suit was taxable as ordinary income.
Petitioner, an Ohio corporation with principal office in Mainville, Ohio, is engaged primarily in the business of manufacturing and selling tire-changing equipment. It is on an accrual basis and filed its Federal income tax return for…
2Cases cited8 opinions
- Raytheon Production Corp. v. Commissioner of Int. Rev.Court of Appeals for the First Circuit · 1944
- Durkee v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1947
- Mathey v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1949
- Sager Glove Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1962
- Sager Glove Corp. v. CommissionerUnited States Tax Court · 1961
3 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Bresler v. CommissionerUnited States Tax Court · 1975
- Wheeler v. CommissionerUnited States Tax Court · 1972
- Smith v. CommissionerUnited States Tax Court · 1968
- State Fish Corp. v. CommissionerUnited States Tax Court · 1967
- Big Four Industries, Inc. v. CommissionerUnited States Tax Court · 1963
2 more not listed; retrieve them via the Exa API.