Butler v. Commissioner
United States Tax Court
The conveyance by one of petitioners of a one-half interest in his accounting practice to another with whom he formed a partnership for the practice of accounting resulted in capital gain to the extent that the amount received exceeds petitioner's basis in the assets sold, the portion of the payment in excess of that allocable to the tangible assets transferred to the partnership being in payment for one-half of the business' goodwill.
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioners’ income tax for the calendar years 1959,1960, and 1961 in the amounts of $361.58, $361.57, and $216.95, respectively.
The issue for decision is whether petitioner Hoyt Butler received the amount of $9,641.99 as payment for goodwill of a one-half interest in his accounting practice which he conveyed to J. Edward ‘Stowe pursuant to an oral agreement between the two for the formation of a partnership for the practice of accounting.
FINDINGS OF FACT
Some of the facts have, been stipulated and are found accordingly.
Petitioners, husband…
2Cases cited7 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
- Horton v. CommissionerUnited States Tax Court · 1949
- Watson v. CommissionerUnited States Tax Court · 1960
- O'Rear v. CommissionerUnited States Board of Tax Appeals · 1933
2 more not listed; retrieve them via the Exa API.
3Cited by11 opinions
- Lucas v. CommissionerUnited States Tax Court · 1972
- Miller v. CommissionerUnited States Tax Court · 1971
- Rudd v. CommissionerUnited States Tax Court · 1982
- Misegades v. CommissionerUnited States Tax Court · 1969
- Butler v. CommissionerUnited States Tax Court · 1966
6 more not listed; retrieve them via the Exa API.