Turner v. Commissioner
United States Tax Court
Held: The lump-sum payment received from a bank by a restaurateur to cease the operation of his business and surrender immediate possession of the leased restaurant premises to the bank did not qualify in whole or in part for long-term capital gains treatment.
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Held: The lump-sum payment received from a bank by a restaurateur to cease the operation of his business and surrender immediate possession of the leased restaurant premises to the bank did not qualify in whole or in part for long-term capital gains treatment. The bank urgently needed a temporary location due to a fire in its own building, and the transaction did not constitute the sale or exchange of any capital asset within the purview of secs. 1221 and 1222, I.R.C. 1954. Locational goodwill does not exist separately from the going business of which it is a part.
1Opinion of the Court
Hoyt, Judge:
This case involves a deficiency in income tax for the taxable year 1961 amounting to $3,256.75. The sole question for our decision is whether the sum of $13,125, part of a greater amount received by petitioners from Citizens Bank & Trust Co. of Campbells-ville, Ky., represented gain from the sale or exchange of a capital asset, or, as respondent has determined, ordinary rental income.
FINDINGS OF FACT
All of the facts have been stipulated and are found accordingly, with due weight being given to accompanying documentary, exhibits.
The petitioners, Redman L. Turner and Naomi S.…
2Cases cited9 opinions
- Hort v. CommissionerSupreme Court of the United States · 1941
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
- Grace Bros. v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1949
- Williams v. McGowanCourt of Appeals for the Second Circuit · 1945
- Grace Bros., Inc. v. CommissionerUnited States Tax Court · 1948
4 more not listed; retrieve them via the Exa API.
3Cited by18 opinions
- PPG Indus., Inc. v. CommissionerUnited States Tax Court · 1970
- United States Mineral Products Co. v. CommissionerUnited States Tax Court · 1969
- Wilmot Fleming Engineering Co. v. CommissionerUnited States Tax Court · 1976
- Vest v. CommissionerUnited States Tax Court · 1971
- Miller v. CommissionerUnited States Tax Court · 1971
13 more not listed; retrieve them via the Exa API.