Cleveland v. Commissioner
United States Tax Court
Petitioner without written or oral agreement over a period of years made advances of funds to an inventor. The inventor expended a portion of such funds for experimental and developmental purposes with respect to his invention. On April 20, 1956, petitioner and the inventor executed an agreement with retroactive effect respecting such advances and the inventor's rights in his invention.
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Petitioner without written or oral agreement over a period of years made advances of funds to an inventor. The inventor expended a portion of such funds for experimental and developmental purposes with respect to his invention. On April 20, 1956, petitioner and the inventor executed an agreement with retroactive effect respecting such advances and the inventor's rights in his invention. Held: Advances made prior to the agreement and subsequent thereto were mere loans by petitioner. The agreement constituted a sale and purchase of a one-half interest by and to petitioner in the invention in…
1Opinion of the Court
Withey, Judge:
Deficiencies in income tax have been determined by respondent with respect to petitioners for the taxable years 1955 and 1956 in the respective amounts of $2,730.69 and $1,571.18. The only issue for decision is whether under section 174, I.R.C. 1954, certain expenditures, agreed to in amount and purpose, made by petitioners in those years are deductible as experimental and developmental expenses.
FINDINGS OF FACT.
The stipulated facts are found.
Petitioners are husband and wife, she being a party hereto only because of joint income tax returns filed for the years at issue.…
2Cited by12 opinions
- Green v. Comm'rUnited States Tax Court · 1984
- Snow v. CommissionerUnited States Tax Court · 1972
- Richard F. Cleveland and Jessie B. Cleveland v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1961
- Burde v. CommissionerUnited States Tax Court · 1964
- Koss v. CommissionerUnited States Tax Court · 1989
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