Std. Brass & Mfg. Co. v. Comm'r
United States Tax Court
The amount by which petitioner's indebtedness for royalties was reduced, pursuant to prolonged negotiations conducted under a contractual provision therefor, was not a gift to the debtor of the amount agreed upon as excessive, and having been deducted in prior years as business expenses, resulted in realization of taxable income to petitioner.
1Opinion of the Court
OPINION.
Johnson, Judge:
The amount of $34,715.48 in controversy represents the difference between the original license rates and the ones agreed upon in March 1948, retroactive to the time of execution of the agreement. Royalties at the original rates were accrued each year, except for March 1948, for which period the accrual was on the basis of the adjusted rates, and the amounts so accrued were claimed as expense deductions in the year of accrual. No contention is made that the accruals were disallowed as deductions by the respondent.
Petitioner’s contention in general is that the balance due…
2Cases cited7 opinions
- Commissioner v. JacobsonSupreme Court of the United States · 1949
- Helvering v. American Dental Co.Supreme Court of the United States · 1943
- Roberts v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1949
- Denman Tire & Rubber Co. v. CommissionerUnited States Tax Court · 1950
- Denman Tire & Rubber Co. v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1951
2 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Std. Brass & Mfg. Co. v. Comm'rUnited States Tax Court · 1953