Dahlen v. Commissioner

OPINION.

Johnson, Judge:

The difference between the parties under the issue is whether there were sales of partnership interests taxable as capital gain,, as reported by the petitioners, or sales of assets of the business, taxable as ordinary income, as determined by the respondent.2

Respondent first asserts that the agreement of sale was in the form of a sale of assets. We do not so view it.

The contract of sale provided for a specified amount in payment of the “coffee and tea manufacturing business” of the partners, consisting, in general, of all of its tangible and intangible assets, including…