Wolcott v. Commissioner
United States Tax Court
Upon dissolution in 1955 of an architectural partnership in which petitioner was one of two partners, a settlement agreement was entered into by the partners under which petitioner was to take over, complete, and retain the fees from 4 of the 20 active architectural contracts held by the firm at the time of dissolution, and the other partner took over the remaining contracts.
Read the full summary
Upon dissolution in 1955 of an architectural partnership in which petitioner was one of two partners, a settlement agreement was entered into by the partners under which petitioner was to take over, complete, and retain the fees from 4 of the 20 active architectural contracts held by the firm at the time of dissolution, and the other partner took over the remaining contracts. The other partner agreed to pay petitioner $ 10,000 in cash and petitioner's indebtedness to the firm was canceled. Held, the cash payments made to petitioner and the cancellation of his indebtedness to the firm were…
1Opinion of the Court
Drennen, Judge:
Respondent determined deficiencies in petitioners’ income tax for the years 1955 and 1956 in the amounts of $2,434.06 and $135.49, respectively.
The issue for decision is whether the amount of cash received by petitioner, John Winthrop Wolcott, from his former partner and the cancellation of petitioner’s indebtedness to the firm pursuant to an agreement settling and disposing of the assets of their dissolved partnership is taxable as ordinary income or as capital gain.
FINDINGS OF FACT.
Some of the facts, with exhibits attached, have been stipulated and are incorporated herein by…
2Cases cited8 opinions
- Helvering v. SmithCourt of Appeals for the Second Circuit · 1937
- Brooks v. CommissionerUnited States Tax Court · 1961
- Swiren v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1950
- Hatch's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1952
- Watson v. CommissionerUnited States Tax Court · 1960
3 more not listed; retrieve them via the Exa API.
3Cited by14 opinions
- VGS Corp. v. CommissionerUnited States Tax Court · 1977
- Wilmot Fleming Engineering Co. v. CommissionerUnited States Tax Court · 1976
- Harry C. v. United StatesUnited States Court of Claims · 1967
- Glazer v. CommissionerUnited States Tax Court · 1965
- Logan v. CommissionerUnited States Tax Court · 1968
9 more not listed; retrieve them via the Exa API.