Flower v. Commissioner
United States Tax Court
1. Payments received by petitioner under an agreement terminating a contract under which petitioner had the right to perform personal services on a commission basis is taxable to petitioners as ordinary income rather than capital gain. 2. Business expenses paid by petitioner under an agreement which provided that petitioner would be reimbursed for the expenses upon termination of the agreement are not deductible as ordinary and necessary expenses of petitioner's business.
1Opinion of the Court
Harry M. Flower and Gail Flower, Petitioners v. Commissioner of Internal Revenue, Respondent
Flower v. Commissioner
Docket No. 7432-70
United States Tax Court
61 T.C. 140; 1973 U.S. Tax Ct. LEXIS 29; 61 T.C. No. 18;
October 31, 1973, Filed
Decision will be entered for the respondent.
1. Payments received by petitioner under an agreement terminating a contract under which petitioner had the right to perform personal services on a commission basis is taxable to petitioners as ordinary income rather than capital gain.
2. Business expenses paid by petitioner under an agreement which provided that…
2Cases cited20 opinions
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Canelo v. CommissionerUnited States Tax Court · 1969
- Patchen v. CommissionerUnited States Tax Court · 1956
- Universal Oil Products Co. v. Campbell (United States, Intervenor) (Two Cases)Court of Appeals for the Seventh Circuit · 1950
- United States v. Charles G. Eidson, Jr.Court of Appeals for the Fifth Circuit · 1962
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