Mills Pharmaceuticals, Inc. v. Commissioner
United States Tax Court
Petitioner entered into a contract with Stanford, whereby petitioner obtained the exclusive right to purchase the products manufactured by Stanford at 80 percent of list price. The price charged by Stanford was too high to permit petitioner to successfully compete in the market. Therefore, petitioner acquired the stock of Stanford and amended the contract.
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Petitioner entered into a contract with Stanford, whereby petitioner obtained the exclusive right to purchase the products manufactured by Stanford at 80 percent of list price. The price charged by Stanford was too high to permit petitioner to successfully compete in the market. Therefore, petitioner acquired the stock of Stanford and amended the contract. Held, neither a covenant not to compete nor a premium paid for the intangible asset has been demonstrated, and therefore petitioner is not entitled to an amortization deduction.
1Opinion of the Court
Mills Pharmaceuticals, Inc., Petitioner v. Commissioner of Internal Revenue, Respondent
Mills Pharmaceuticals, Inc. v. Commissioner
Docket No. 6035-69
United States Tax Court
57 T.C. 308; 1971 U.S. Tax Ct. LEXIS 17;
December 7, 1971, Filed
Decision will be entered for the respondent.
Petitioner entered into a contract with Stanford, whereby petitioner obtained the exclusive right to purchase the products manufactured by Stanford at 80 percent of list price. The price charged by Stanford was too high to permit petitioner to successfully compete in the market. Therefore, petitioner acquired the stock…
2Cases cited11 opinions
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
- Kimbell-Diamond Milling Co. v. Comm'rUnited States Tax Court · 1950
- Ullman v. CommissionerCourt of Appeals for the Second Circuit · 1959
- Kimbell-Diamond Milling Co. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1951
- Commissioner of Internal Revenue v. Seaboard Finance Company, Seaboard Finance Company, Cross v. Commissioner of Internal Revenue, CrossCourt of Appeals for the Ninth Circuit · 1966
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