Johnson v. Commissioner
United States Tax Court
Frazier & Co. is a partnership which has been engaged in the general insurance agency business since 1940. In 1958 the partnership sold its insurance business, including expiration data and goodwill, to the Aaetna Insurance Co. The sales price consisted of a stated percentage of premiums produced by Frazier & Co.'s "agency plant" during the 5-year period following the sale.
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Frazier & Co. is a partnership which has been engaged in the general insurance agency business since 1940. In 1958 the partnership sold its insurance business, including expiration data and goodwill, to the Aaetna Insurance Co. The sales price consisted of a stated percentage of premiums produced by Frazier & Co.'s "agency plant" during the 5-year period following the sale. Held, Frazier & Co. sold valuable assets to Aetna in the nature of goodwill and, except for amounts representing compensation for employment services rendered by the individual partners Frazier and Johnson after the sale,…
1Opinion of the Court
Fay, Judge:
Respondent determined the following deficiencies in petitioners’ income taxes for the taxable years 1958 through 1963:
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The sole issue for determination is whether certain payments received by Roy W. Johnson and Walter G. Frazier from Aetna Insurance Co. on the sale of their general insurance agency business are taxable as ordinary income or as capital gains.
FINDINGS OP PACT
Some of the facts were stipulated. The stipulation of facts and the exhibits attached thereto are incorporated herein by this reference.
Petitioners Roy W. Johnson (hereinafter sometimes referred to…
2Cases cited18 opinions
- Corn Products Refining Co. v. CommissionerSupreme Court of the United States · 1956
- Commissioner v. P. G. Lake, Inc.Supreme Court of the United States · 1958
- Hort v. CommissionerSupreme Court of the United States · 1941
- Commissioner v. Gillette Motor Transport, Inc.Supreme Court of the United States · 1960
- Ullman v. CommissionerCourt of Appeals for the Second Circuit · 1959
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3Cited by12 opinions
- Lucas v. CommissionerUnited States Tax Court · 1972
- Baldarelli v. CommissionerUnited States Tax Court · 1973
- Estate of Taracido v. CommissionerUnited States Tax Court · 1979
- Edelberg v. CommissionerUnited States Tax Court · 1995
- Home Juice Co. v. CommissionerUnited States Tax Court · 1977
7 more not listed; retrieve them via the Exa API.