Garcia v. Commissioner
United States Tax Court
P, a professional golfer and a resident of Switzerland, entered into an endorsement agreement with sponsor T. P agreed to allow T to use his image, name, and voice (image rights) in advertising and marketing campaigns worldwide. P also agreed to perform personal services for T including using T's products in all his golf play, posing and acting for advertisements, and making personal appearances for the company.
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P, a professional golfer and a resident of Switzerland, entered into an endorsement agreement with sponsor T. P agreed to allow T to use his image, name, and voice (image rights) in advertising and marketing campaigns worldwide. P also agreed to perform personal services for T including using T's products in all his golf play, posing and acting for advertisements, and making personal appearances for the company. In return for his services and use of his image rights, T agreed to pay P certain compensation. P and T allocated 85% of P's compensation to royalties (for use of his image rights)…
1Opinion of the Court
Goeke, Judge:
Respondent determined deficiencies in petitioner’s Federal income tax of $930,248 and $789,518 for tax years 2003 and 2004, respectively, as a result of income he purportedly received during those years through an endorsement agreement with TaylorMade Golf Co. (TaylorMade). After concessions, the issues for decision are:(1) the extent to which payments made by TaylorMade under the endorsement agreement are compensation for the performance of petitioner’s personal services and the extent to which the payments are royalties for the use of petitioner’s image rights. We hold that the…
2Cases cited17 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Indopco, Inc. v. CommissionerSupreme Court of the United States · 1992
- Joseph R. Dileo, Mary A. Dileo, Walter E. Mycek, Jr., Michele A. Mycek and Arcelo Reproduction Company, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1992
- Kolovrat v. OregonSupreme Court of the United States · 1961
- Haelan Laboratories, Inc. v. Topps Chewing Gum, Inc.Court of Appeals for the Second Circuit · 1953
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3Cited by2 opinions
- K. Slaughter v. CommissionerUnited States Tax Court · 2019
- Sergio Garcia v. CommissionerUnited States Tax Court · 2013