Chilton v. Commissioner
United States Tax Court
Petitioner, during the years 1929 through 1949, had contracts with his employers to do work as an engineer and to work on improvements of his employers' products. Petitioner during regular working hours was to apply his full time and talents and his inventive ability to his employers' products. The contracts provided for a salary of $ 15,000 a year to be paid petitioner. This yearly amount was paid petitioner until 1949 when his employment under these contracts ceased.
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Petitioner, during the years 1929 through 1949, had contracts with his employers to do work as an engineer and to work on improvements of his employers' products. Petitioner during regular working hours was to apply his full time and talents and his inventive ability to his employers' products. The contracts provided for a salary of $ 15,000 a year to be paid petitioner. This yearly amount was paid petitioner until 1949 when his employment under these contracts ceased. The contracts also provided that petitioner would disclose to and assign to his employers any inventions, patent…
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioners’ income tax for the years 1954, 1955, 1956, and 1957 in the amounts of $48,873.52, $35,589.50, $2,400.96, and $717.02 respectively.
The issue for decision is whether amounts received in the years here involved by Roland Chilton pursuant to contracts with his employers constitute ordinary income as compensation or long-term capital gains from the sale or exchange of patents.
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
Petitioners, husband and wife residing in Glen Rock, N.J., filed joint Federal…
2Cases cited13 opinions
- United States v. Dubilier Condenser CorpSupreme Court of the United States · 1933
- Dalzell v. Dueber Watch Case Manufacturing Co.Supreme Court of the United States · 1893
- Standard Parts Co. v. PeckSupreme Court of the United States · 1924
- Hapgood v. HewittSupreme Court of the United States · 1886
- Dreymann v. Comm'rUnited States Tax Court · 1948
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3Cited by24 opinions
- Downs v. Comm'rUnited States Tax Court · 1968
- Cupler v. CommissionerUnited States Tax Court · 1975
- Hamrick v. CommissionerUnited States Tax Court · 1964
- McClain v. Comm'rUnited States Tax Court · 1963
- Beausoleil v. CommissionerUnited States Tax Court · 1976
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