Michaels v. Commissioner
United States Tax Court
Disposition by sole proprietor of laundry business, including customers' lists and good will, accompanied by an agreement not to compete, held to result only in capital gain. Toledo Newspaper Co., 2 T. C. 794; Toledo Blade Co., 11 T. C. 1079, followed.
1Opinion of the Court
OPINION.
Offer, Judge:
We entertain no doubt that good will and such related items as customers’ lists are capital assets. Ensley Bank & Trust Co. v. United States (C. C. A., 5th Cir.), 154 Fed. (2d) 968; certiorari denied, 329 U. S. 732; see X-Pando Corporation, 7 T. C. 48; Rainier Brewing Co., 7 T. C. 162; affd. (C. C. A., 9th Cir.), 165 Fed. (2d) 217; rehearing denied (C. C. A., 9th Cir.), 166 Fed. (2d) 324. The parties agree that the linens with a stipulated selling price of $1,528.85 were not capital assets, so that the consequence of their sale was an ordinary income item. Petitioner…
2Cases cited3 opinions
- Toledo Newspaper Co. v. CommissionerUnited States Tax Court · 1943
- Rainier Brewing Co. v. CommissionerUnited States Tax Court · 1946
- X-Pando Corp. v. CommissionerUnited States Tax Court · 1946
3Cited by117 opinions
- Hamlin's Trust v. Commissioner of Internal Revenue. Nowel's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1954
- Schmitz v. CommissionerUnited States Tax Court · 1968
- Charles W. Balthrope and Mary v. Balthrope v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1966
- Horton v. CommissionerUnited States Tax Court · 1949
- United States v. Charles G. Eidson, Jr.Court of Appeals for the Fifth Circuit · 1962
112 more not listed; retrieve them via the Exa API.