Stokely USA, Inc. v. Commissioner
United States Tax Court
Sec. 1253, I.R.C., allows a transferee of a trademark to amortize its cost if the transferor retains any significant power, right, or continuing interest in the subject matter of the trademark.
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Sec. 1253, I.R.C., allows a transferee of a trademark to amortize its cost if the transferor retains any significant power, right, or continuing interest in the subject matter of the trademark. P purchased trademarks from F for a lump-sum payment of $ 1,584,500. Pursuant to the trademark transfer agreement, F retained the right to disapprove any assignment of the trademarks by P for a 5-year period, and P agreed that it would not use the trademarks in connection with certain products for 20 years. Held: The 5-year right retained by F to disapprove assignment of the trademarks is not a right…
1Opinion of the Court
OPINION
Ruwe, Judge:
Respondent determined deficiencies in petitioner’s corporate income tax as follows:
TYE Deficiency
Mar. 31, 1983 . $62,931
Mar. 31, 1984 . 75,201
Mar. 31, 1985 . 74,037
Mar. 31, 1986 . 11,106
Total . 223,275
The only issue we must decide to resolve this case is whether a lump sum that petitioner paid to purchase certain trademarks may be amortized pursuant to section 1253(d)(2)(A).1
This case was submitted fully stipulated. The stipulation of facts and attached exhibits are incorporated herein by this reference.
Petitioner was incorporated in 1920 under the name Oconomowoc Canning…
2Cases cited12 opinions
- United States v. American Trucking AssociationsSupreme Court of the United States · 1940
- United States v. SteffensSupreme Court of the United States · 1879
- Equal Employment Opportunity Commission v. Commercial Office Products Co.Supreme Court of the United States · 1988
- Richard M. Boe and Mary Lots Boe v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1962
- Boe v. CommissionerUnited States Tax Court · 1961
7 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
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- International Multifoods Corp. v. CommissionerUnited States Tax Court · 1997
- International Multifoods Corporation and Affiliated Companies v. CommissionerUnited States Tax Court · 1997
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