Omholt v. Commissioner
United States Tax Court
A corporation entered into an agreement with its controlling stockholder for the acquisition of a patent covering a flooring system providing for the payment of a royalty which was adjusted from time to time by agreement of the parties. Following the close of each taxable year, the corporation would compute the amount of the royalty due and issue its notes for the amount thereof. Thereafter, the corporation made payments on the notes as funds became available.
Read the full summary
A corporation entered into an agreement with its controlling stockholder for the acquisition of a patent covering a flooring system providing for the payment of a royalty which was adjusted from time to time by agreement of the parties. Following the close of each taxable year, the corporation would compute the amount of the royalty due and issue its notes for the amount thereof. Thereafter, the corporation made payments on the notes as funds became available. Held, irrespective of any agreement between the parties, a reasonable royalty within the meaning of sec. 167(a), I.R.C. 1954, did not…
1Opinion of the Court
Ray E. Omholt and Jeanette Omholt, et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Omholt v. Commissioner
Docket Nos. 2702-70, 2703-70
United States Tax Court
60 T.C. 541; 1973 U.S. Tax Ct. LEXIS 95; 60 T.C. No. 60;
July 9, 1973, Filed
Decisions will be entered under Rule 50.
A corporation entered into an agreement with its controlling stockholder for the acquisition of a patent covering a flooring system providing for the payment of a royalty which was adjusted from time to time by agreement of the parties. Following the close of each taxable year, the corporation would…
2Cases cited15 opinions
- Williams v. CommissionerUnited States Tax Court · 1957
- Hyland v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1949
- Lowe v. CommissionerUnited States Tax Court · 1965
- Fetzer Refrigerator Co. And Louisville Cooler Mfg. Co. v. United StatesCourt of Appeals for the Sixth Circuit · 1971
- Poole v. CommissionerUnited States Tax Court · 1966
10 more not listed; retrieve them via the Exa API.