B. T. Babbitt, Inc. v. Commissioner
United States Board of Tax Appeals
Contracts for the purchase of competitors' businesses included convenants to refrain from competition for definite periods. Upon the proof of the relative value of those covenants to other properties acquired under the contracts, it is held that an equal portion of the total price paid in each case is exhaustible over the period during which the covenant to refrain from competition was effective.
1Opinion of the Court
*695OPINION.
Aeunbell :
The pleadings herein raise issues as to deductions for depreciation and obsolescence of trade brands and trade-marks, and amortization of contracts to refrain from competition. There is no evidence concerning the basis or rate of exhaustion of the trade brands or trade-marks and we assume that issue has been abandoned by petitioner. See Norwich Pharmacal Co., 30 B. T. A. 326, holding that trade-marks are not susceptible of exhaustion by the passage of time, nor wear and tear by use in the business.
Petitioners’ present claim is for deductions for the amortization of the…
2Cited by14 opinions
- Commissioner of Internal Revenue v. Gazette Tel. Co.Court of Appeals for the Tenth Circuit · 1954
- Howard Constr., Inc. v. CommissionerUnited States Tax Court · 1964
- Falstaff Beer, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1963
- Rudie v. CommissionerUnited States Tax Court · 1967
- Falstaff Beer, Inc. v. CommissionerUnited States Tax Court · 1961
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