Drybrough v. Commissioner
United States Tax Court
On the sale of a collection agency business which he had operated as a sole proprietorship petitioner reported only long-term capital gain.
Read the full summary
On the sale of a collection agency business which he had operated as a sole proprietorship petitioner reported only long-term capital gain. The principal activities of the business had been the collection of claims for others (white files) on a contingent fee basis, and the collection of claims which petitioner owned (green files and gold files). Held: 1. The parties being agreed that the contract price for the furniture and fixtures was unreasonably high, the fair market value of such item is determined. 2. The white files were a mass asset in the natured of goodwill and petitioner's gain on…
1Opinion of the Court
Forrester, Judge,:
Respondent determined deficiencies in tbe income tax of tbe petitioners for tbe years and in amounts as follows:
Y ear Deficiency
1959_ $88,304.48
1960_ 121,379.80
Some of tbe matters at issue bave been conceded by tbe parties, leaving for onr consideration tbe following: (1) What was the fair market value of the furniture, fixtures, and equipment sold by F. W. Drybrough (hereinafter referred to as tbe petitioner) on March 2, 1959, to the purchasers of his sole proprietorship; (2) is the petitioner bound by the contract price of $395,000 specified for the asset known as the…
2Cases cited27 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Burnet v. LoganSupreme Court of the United States · 1931
- Kieselbach v. CommissionerSupreme Court of the United States · 1943
- Richard M. Boe and Mary Lots Boe v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
22 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- First Pennsylvania Banking & Trust Co. v. CommissionerUnited States Tax Court · 1971
- Hollywood Baseball Association v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1970
- Credit Bureau of Erie, Inc. v. CommissionerUnited States Tax Court · 1970
- Deseret Management Corporation v. United StatesUnited States Court of Federal Claims · 2013
- F. W. Drybrough v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1967
7 more not listed; retrieve them via the Exa API.