Rainier Brewing Co. v. Commissioner
United States Tax Court
1. The amount received by petitioner in 1940 for the exclusive and perpetual right to use its trade names in a limited territory held not ordinary income, but proceeds from the sale of a capital asset.
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1. The amount received by petitioner in 1940 for the exclusive and perpetual right to use its trade names in a limited territory held not ordinary income, but proceeds from the sale of a capital asset. Seattle Brewing & Malting Co., 6 T. C. 856. 2. The March 1, 1913, value of good will incident to trade names determined. 3. Held, deduction for loss in value of good will occasioned by the National Prohibition Amendment is not provided for by the words "exhaustion" or "obsolescence" as used in the income tax laws and is neither "allowed" nor "allowable" within the meaning of section 113 (b) (1)…
1Opinion of the Court
OPINION.
Hakron, Judge:
Issue 1. — The first issue raised by the pleadings is whether $1,000,000 in notes received by petitioner in 1940, in consideration of the exclusive and perpetual right to use the trade names “Bainier” and “Tacoma” in the manufacture and sale of alcoholic malt beverages in the State of Washington and the Territory of Alaska, was ordinary income and taxable as such. The question turns on whether the sum of $1,000,000 is to be regarded as prepaid royalties, or whether it is to be regarded as an expenditure in the acquisition of a capital asset.
The decision of this issue is…
2Cases cited8 opinions
- Mugler v. KansasSupreme Court of the United States · 1887
- Dobson v. CommissionerSupreme Court of the United States · 1944
- Ithaca Trust Co. v. United StatesSupreme Court of the United States · 1929
- Virginian Hotel Corporation v. Helvering, Commissioner of Internal RevenueSupreme Court of the United States · 1943
- J. L. Cooper & Co. v. Anchor Securities Co.Washington Supreme Court · 1941
3 more not listed; retrieve them via the Exa API.
3Cited by32 opinions
- Michaels v. CommissionerUnited States Tax Court · 1949
- Quality Brands, Inc. v. CommissionerUnited States Tax Court · 1976
- Merck & Co. v. SmithCourt of Appeals for the Third Circuit · 1958
- United States v. General Bancshares Corporation, General Bancshares Corporation v. United StatesCourt of Appeals for the Eighth Circuit · 1968
- Zellerbach Paper Co. v. CommissionerUnited States Tax Court · 1947
27 more not listed; retrieve them via the Exa API.