Major v. Commissioner
United States Tax Court
Buyer purchased the stock of T from seller. The contract of sale contained a covenant not to compete; however, the entire purchase price was allocated to the T stock and no part was allocated to the covenant. Strong proof doctrine applied. Held, the Seventh Circuit's substance over form analysis, which concentrates on the intention of the parties and economic reality, is not inconsistent with the strong proof standard preferred by this Court. Wilson Athletic G. Mfg.
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Buyer purchased the stock of T from seller. The contract of sale contained a covenant not to compete; however, the entire purchase price was allocated to the T stock and no part was allocated to the covenant. Strong proof doctrine applied. Held, the Seventh Circuit's substance over form analysis, which concentrates on the intention of the parties and economic reality, is not inconsistent with the strong proof standard preferred by this Court. Wilson Athletic G. Mfg. Co. v. Commissioner, 222 F.2d 355 (7th Cir. 1955); G C Services Corp. v. Commissioner, 73 T.C. 406 (1979); Lucas v.…
1Opinion of the Court
Forrester, Judge:
In these consolidated cases respondent has determined deficiencies in petitioners’ Federal income taxes as follows:
Petitioner Year ending Deficiency
Hugh Major and Charlotte Major .Dec. 31, 1972 1 $¿,803.37
Specialized Transportation, Inc .May 31, 1972 6,292.25
May 31, 1973 30,572.23
Concessions having been made, the only issue remaining for decision is whether any portion of the sale price of all of the corporate stock of Thunderbird Motor Freight Lines, Inc., must be allocated to a covenant not to compete.
FINDINGS OF FACT
Some of the facts have been stipulated and are so found.
Pe…
2Cases cited25 opinions
- Welch v. HelveringSupreme Court of the United States · 1933
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Higgins v. SmithSupreme Court of the United States · 1940
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
20 more not listed; retrieve them via the Exa API.
3Cited by66 opinions
- Fono v. CommissionerUnited States Tax Court · 1982
- Miami Purchasing Service Corp. v. CommissionerUnited States Tax Court · 1981
- Peterson Machine Tool, Inc. v. CommissionerUnited States Tax Court · 1982
- James A. Patterson and Dorothy A. Patterson v. Commissioner of Internal RevenueCourt of Appeals for the Sixth Circuit · 1987
- Banc One Corp. v. CommissionerUnited States Tax Court · 1985
61 more not listed; retrieve them via the Exa API.