Kuzmick v. Commissioner
United States Tax Court
Over a period of years the taxpayer, assisted by his wife, conducted hundreds of experiments for the improvement of abrasive wheels in the basement of his home. His wife, following instructions during the day, precisely weighed, mixed, and heated ingredients, producing plugs on which both experimented at night after his return from work. Having developed formulae for three types of wheels, the taxpayer applied for patents, which were eventually granted.
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Over a period of years the taxpayer, assisted by his wife, conducted hundreds of experiments for the improvement of abrasive wheels in the basement of his home. His wife, following instructions during the day, precisely weighed, mixed, and heated ingredients, producing plugs on which both experimented at night after his return from work. Having developed formulae for three types of wheels, the taxpayer applied for patents, which were eventually granted. He assigned all interest in these inventions to a manufacturer, which agreed to pay him a percentage of its profits from the sale of wheels…
1Opinion of the Court
OPINION.
Johnson, Judge:
Petitioner assails the Commissioner’s determination that he is taxable on the incomes reported in 1942 and 1943 by his wife as her share of partnership profits. He contends primarily that the partnership was recognizable for tax purposes, contrary /to the Commissioner’s finding that “no partnership existed,” and, in the alternative, that regardless of the partnership agreement his wife was the equitable owner of a half interest in the inventions and hence entitled to a half of the proceeds derived from them. He contends further that such proceeds should be taxed as long…
2Cases cited9 opinions
- Lucas v. EarlSupreme Court of the United States · 1930
- Commissioner v. TowerSupreme Court of the United States · 1946
- Lusthaus v. CommissionerSupreme Court of the United States · 1946
- Dreymann v. Comm'rUnited States Tax Court · 1948
- Zukaitis v. CommissionerUnited States Tax Court · 1944
4 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Kronner v. United StatesUnited States Court of Claims · 1953
- Kuzmick v. CommissionerUnited States Tax Court · 1948