Foxe v. Commissioner
United States Tax Court
The petitioner had an employment contract with Constitution under which he and his subordinates were to sell insurance in a stated territory. Under this agreement, the petitioner received a salary plus renewal commissions on insurance policies written with Constitution. In 1961, this employment contract was terminated, and the petitioner received consideration for the relinquishment of his rights under such contract.
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The petitioner had an employment contract with Constitution under which he and his subordinates were to sell insurance in a stated territory. Under this agreement, the petitioner received a salary plus renewal commissions on insurance policies written with Constitution. In 1961, this employment contract was terminated, and the petitioner received consideration for the relinquishment of his rights under such contract. Held, the termination of the employment agreement did not constitute the sale or exchange of a capital asset, and the consideration received by the petitioner under such…
1Opinion of the Court
Simpson, Judge;
The respondent determined deficiencies in the petitioners’ income tax as follows:
Trame, si— Deficiency
1961. $3, 342. 85
1962. 2, 268. 03
1963. 1, 442. 16
1964. 1, 444. 20
The issue remaining for decision is whether certain amounts received by the petitioner in consideration of the termination of his employment contract with Constitution Life Insurance Co. are taxable as ordinary income or as gain from the sale or exchange of a capital asset.
FINDINGS OF FACT
Some of the facts have been stipulated, and those facts are so found.
Kobert E. Foxe and Mary M. Foxe are husband and wife who…
2Cases cited15 opinions
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