Schulz v. Commissioner
United States Tax Court
Held: Monthly payments to a retiring partner, specifically allocated in the formal agreement of partnership dissolution as consideration for his separately stated covenant not to compete, in fact reflected partnership goodwill and were a "nonseverable" portion of the consideration paid him for his capital interest in the partnership as a going business.
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Held: Monthly payments to a retiring partner, specifically allocated in the formal agreement of partnership dissolution as consideration for his separately stated covenant not to compete, in fact reflected partnership goodwill and were a "nonseverable" portion of the consideration paid him for his capital interest in the partnership as a going business. Accordingly, the payments in question were capital gain to the retiring partner and unamortizable, nondeductible capital expenditures to the continuing partners. Held, further, that the continuing partners correctly reported in their…
1Opinion of the Court
Ray H. Schulz and Doris L. Schulz, et al., 1 Petitioners, v. Commissioner of Internal Revenue, Respondent
Schulz v. Commissioner
Docket Nos. 67160, 67161, 67162, 67310
United States Tax Court
34 T.C. 235; 1960 U.S. Tax Ct. LEXIS 153;
May 19, 1960, Filed
Decisions will be entered under Rule 50.
Held: Monthly payments to a retiring partner, specifically allocated in the formal agreement of partnership dissolution as consideration for his separately stated covenant not to compete, in fact reflected partnership goodwill and were a "nonseverable" portion of the consideration paid him for his capital…
2Cases cited15 opinions
- Ullman v. CommissionerCourt of Appeals for the Second Circuit · 1959
- Hamlin's Trust v. Commissioner of Internal Revenue. Nowel's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1954
- Heiner v. MellonSupreme Court of the United States · 1938
- Michaels v. CommissionerUnited States Tax Court · 1949
- Commissioner of Internal Revenue v. Gazette Tel. Co.Court of Appeals for the Tenth Circuit · 1954
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