Estate of Stahl v. Comm'r
United States Tax Court
On Jan. 3, 1956, William F. Stahl sold to his controlled corporation (Precision) eight patents and five patent applications for a full purchase price of $ 300,000, evidenced by 15 promissory notes of $ 20,000 each, dated Jan. 3, 1956, payable serially beginning Jan. 3, 1957, and each year thereafter for 15 years with interest at 5 percent per annum after due date. The purchase price was allocated $ 140,000 for the patents and $ 160,000 for the patent applications.
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On Jan. 3, 1956, William F. Stahl sold to his controlled corporation (Precision) eight patents and five patent applications for a full purchase price of $ 300,000, evidenced by 15 promissory notes of $ 20,000 each, dated Jan. 3, 1956, payable serially beginning Jan. 3, 1957, and each year thereafter for 15 years with interest at 5 percent per annum after due date. The purchase price was allocated $ 140,000 for the patents and $ 160,000 for the patent applications. No payment of principal was paid on the notes until 1959 when Precision made a payment of $ 8,971.49. No interest was, in fact,…
1Opinion of the Court
OPINION
The issue for decision is primarily a question of law. Petitioners contend that the amounts received by petitioner during the years in question should be treated as long-term capital gain taxable in the respective years of receipt, whereas respondent contends that such amounts should be treated in those years as ordinary income^ As will appear later, we resolve the issue partly for petitioners and partly for respondent.
The principal thrust of the petitioners’ argument lies in their contention that the payments received by petitioner during the taxable years in question from Precision…
2Cases cited12 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Carter v. CommissionerUnited States Tax Court · 1947
- Harry Rosen and Rose Rosen v. United StatesCourt of Appeals for the Third Circuit · 1961
- Hershey Mfg. Co. v. CommissionerUnited States Board of Tax Appeals · 1928
7 more not listed; retrieve them via the Exa API.
3Cited by21 opinions
- Clement O. Dennis and Genia Lee Dennis v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1973
- Graham v. CommissionerUnited States Tax Court · 1981
- Lan Jen Chu and Grace Y. P. Chu v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1973
- Estate of William F. Stahl, Deceased, Marion B. Stahl, and Marion B. Stahl, Individually, and Cross-Appellants v. Commissioner of Internal Revenue, and Cross-Appellee. Marion B. Stahl, Individually and as of the Estate of William F. Stahl, Deceased, and Cross-Appellant v. United States of America, and Cross-AppelleeCourt of Appeals for the Seventh Circuit · 1971
- Bradshaw v. United StatesUnited States Court of Claims · 1982
16 more not listed; retrieve them via the Exa API.