Dennis v. Commissioner
United States Tax Court
Promissory note for $ 1,500,000 not in registered form or with interest coupons at time of issuance or on Mar. 1, 1954, payable in monthly installments of $ 10,000 for 12 1/2 years, received with 40 percent of stock, in exchange for transfer of undivided one-half interest in patent rights to corporation, capitalized at $ 10,000, at time of incorporation on Oct. 1, 1953, held to be security within meaning of sec. 112(b)(5), I.R.C. 1939, and payments received in retirement…
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Promissory note for $ 1,500,000 not in registered form or with interest coupons at time of issuance or on Mar. 1, 1954, payable in monthly installments of $ 10,000 for 12 1/2 years, received with 40 percent of stock, in exchange for transfer of undivided one-half interest in patent rights to corporation, capitalized at $ 10,000, at time of incorporation on Oct. 1, 1953, held to be security within meaning of sec. 112(b)(5), I.R.C. 1939, and payments received in retirement thereof are taxable as ordinary income.
1Opinion of the Court
Scott, Judge:
Respondent determined deficiencies in petitioners’ income tases for the calendar years 1955 through 1962 in the following amounts:
Year Deficiency
1955 ___$37,436. 32
1956 _ 22,175.34
1957 _ 39,158.53
1958 _ 26,855.66
Year Deficiency
1959 _$21,163. 87
1960 _ 21,305.38
1961___ 2, 677. 28
1962 _ 301.60
Petitioners in their petition claimed overpayments for each of the years 1955 through 1960 based on an alternative position which they appear to have abandoned.
The only issue for decision is whether the amounts received in the years here in issue by petitioners as payments on an unregistered…
2Cases cited11 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Pinellas Ice & Cold Storage Co. v. CommissionerSupreme Court of the United States · 1933
- Camp Wolters Enterprises, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1956
- Baker Commodities, Inc. v. CommissionerUnited States Tax Court · 1967
- Baker Commodities, Inc., a California Corporation v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1969
6 more not listed; retrieve them via the Exa API.
3Cited by7 opinions
- Yamamoto v. CommissionerUnited States Tax Court · 1980
- Clement O. Dennis and Genia Lee Dennis v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1973
- Computer Sciences Corp. v. CommissionerUnited States Tax Court · 1974
- Estate of McKelvey v. Comm'rUnited States Tax Court · 2017
- Computer Sciences Corp. v. CommissionerUnited States Tax Court · 1974
2 more not listed; retrieve them via the Exa API.