Rosenzweig v. Commissioner
United States Tax Court
1. Pursuant to an agreement between the petitioners, brothers, that Henry Rose would pay Jack Rosenzweig one-half of any amount recovered upon a suit for infringement of a copyright in consideration of the latter bearing the expense of the suit, Henry Rose in 1939 paid his brother $ 25,000. Held, that the amount is a legal deduction from the gross income of Henry Rose under section 23 (a) of the Internal Revenue Code, as amended by section 121 of the Revenue Act of 1942. 2.…
Read the full summary
1. Pursuant to an agreement between the petitioners, brothers, that Henry Rose would pay Jack Rosenzweig one-half of any amount recovered upon a suit for infringement of a copyright in consideration of the latter bearing the expense of the suit, Henry Rose in 1939 paid his brother $ 25,000. Held, that the amount is a legal deduction from the gross income of Henry Rose under section 23 (a) of the Internal Revenue Code, as amended by section 121 of the Revenue Act of 1942. 2. In their income tax returns for 1939 the brothers each accounted for his share of the net proceeds, but claimed that the…
1Opinion of the Court
OPINION.
Smith, Judge:
The first question for consideration is whether Henry Rose is liable to income tax for 1939 upon the entire amount of $58,500 net proceeds received upon the settlement of a suit brought by him against the Metro-Goldwyn-Mayer Corporation and associated companies, or on only that amount less the $25,000 paid to his brother, Jack Rosenzweig, upon the settlement of the suit.
Section 23 (a) (1) of the Internal Revenue Code was amended by section 121 of the Revenue Act of 1942. By the amendment taxpayers are permitted to deduct from gross income not only “all the ordinary and…
2Cited by7 opinions
- Hudson v. CommissionerUnited States Tax Court · 1953
- Puelicher v. CommissionerUnited States Tax Court · 1946
- Garland v. CommissionerUnited States Tax Court · 1943
- Hudson v. CommissionerUnited States Tax Court · 1953
- Jergens v. CommissionerUnited States Tax Court · 1943
2 more not listed; retrieve them via the Exa API.