McDermott v. Commissioner
United States Tax Court
Held, on consideration of the documents themselves and the total factual complex surrounding the transactions, that the series of five documents executed by Julian and Mildred in 1943 and 1944, did not constitute a sale or exchange to their controlled corporation of all substantial rights to the patents or inventions which Julian owned at the time or subsequently developed, and the amounts paid to Julian by the corporation as royalties in 1955, are not entitled to treatment…
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Held, on consideration of the documents themselves and the total factual complex surrounding the transactions, that the series of five documents executed by Julian and Mildred in 1943 and 1944, did not constitute a sale or exchange to their controlled corporation of all substantial rights to the patents or inventions which Julian owned at the time or subsequently developed, and the amounts paid to Julian by the corporation as royalties in 1955, are not entitled to treatment as capital gain.
1Opinion of the Court
Julian A. McDermott and Mildred A. McDermott, Petitioners, v. Commissioner of Internal Revenue, Respondent
McDermott v. Commissioner
Docket No. 89107
United States Tax Court
41 T.C. 50; 1963 U.S. Tax Ct. LEXIS 37;
October 14, 1963, Filed
Decision will be entered for the respondent.
Held, on consideration of the documents themselves and the total factual complex surrounding the transactions, that the series of five documents executed by Julian and Mildred in 1943 and 1944, did not constitute a sale or exchange to their controlled corporation of all substantial rights to the patents or inventions…
2Cases cited18 opinions
- Sun Printing and Publishing Assn. v. MooreSupreme Court of the United States · 1902
- Littlefield v. PerrySupreme Court of the United States · 1875
- Dreymann v. Comm'rUnited States Tax Court · 1948
- Kronner v. United StatesUnited States Court of Claims · 1953
- Aspinwall, Manuf'g Co. v. GillUnited States Circuit Court · 1887
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