Juda v. Commissioner
United States Tax Court
C is a limited partnership formed for the purpose of developing and commercially exploiting specific products and product concepts. C acquired rights in three patents from unrelated inventors subject to conditions requiring C to create companies and transfer the patent rights to the companies. C then sold the three patents to three other limited partnerships which C had organized.
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C is a limited partnership formed for the purpose of developing and commercially exploiting specific products and product concepts. C acquired rights in three patents from unrelated inventors subject to conditions requiring C to create companies and transfer the patent rights to the companies. C then sold the three patents to three other limited partnerships which C had organized. Held: C did not acquire all substantial rights to the patents and therefore did not subsequently transfer all substantial rights. Accordingly, gains from the sales may not be treated as capital gains under sec.…
1Opinion of the Court
CLAPP, Judge:
This case has been selected as the test case for a group of docketed cases involving the same major issues arising from proposed adjustments to the partnership income tax returns of Cambridge Research & Development Group (Cambridge). Respondent determined deficiencies in petitioners’ income tax for the years and in the amounts as follows:
Year Amount
1976 . $154
1977 . 1546
1978 . 234
1979 . 460
1980 . 613
1981. 510
The issues for decision are (1) whether certain amounts received by Cambridge with respect to the transfer of patent rights qualify for capital gains treatment under section…
2Cases cited12 opinions
- Deputy, Administratrix v. Du PontSupreme Court of the United States · 1940
- Waterman v. MacKenzieSupreme Court of the United States · 1891
- Commissioner v. GroetzingerSupreme Court of the United States · 1987
- Hildreth v. MastorasSupreme Court of the United States · 1921
- King v. CommissionerUnited States Tax Court · 1987
7 more not listed; retrieve them via the Exa API.
3Cited by9 opinions
- Walter Juda and Renee Juda v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1989
- Cooper v. Comm'rUnited States Tax Court · 2014
- Kaempfer v. CommissionerUnited States Tax Court · 1992
- Paoli v. CommissionerUnited States Tax Court · 1991
- Cooper v. Comm'rUnited States Tax Court · 2014
4 more not listed; retrieve them via the Exa API.