Tomerlin Trust v. Commissioner
United States Tax Court
R determined deficiencies of personal holding company tax against P, a transferee of T, based upon his determination that certain payments received by T from X under a contract involving the right to use a trademark constituted royalties from a license rather than proceeds from the sale of an asset. Under the facts, held, that the contract between T and X was a sale, not a license, and the moneys received by T, although ordinary income, were not royalties.
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R determined deficiencies of personal holding company tax against P, a transferee of T, based upon his determination that certain payments received by T from X under a contract involving the right to use a trademark constituted royalties from a license rather than proceeds from the sale of an asset. Under the facts, held, that the contract between T and X was a sale, not a license, and the moneys received by T, although ordinary income, were not royalties. Held, further, that T was not a personal holding company. Sec. 1253(a), (b), and (c), I.R.C. 1954, interpreted.
1Opinion of the Court
KÓRNER, Judge:
By statutory notice of deficiency dated March 26, 1985, respondent determined that petitioner was liable, as transferee, for the following deficiencies of personal holding company tax of Cyclo Automotive, Inc., for the years and in the amounts as follows:
Deficiency in Years personal holding company tax
1979 .$37,625
1980 . 1,394
1981 . 24,262
1982 .. 129,895
The ultimate issue presented involves the liability of Cyclo Automotive, Inc., for personal holding tax under section 541.2 To resolve this ultimate issue, we must decide whether certain payments made in the years in question to…
2Cases cited14 opinions
- Waterman v. MacKenzieSupreme Court of the United States · 1891
- F. W. Woolworth Co. v. CommissionerUnited States Tax Court · 1970
- Bell Intercontinental Corporation v. The United StatesUnited States Court of Claims · 1967
- Miller v. CommissionerUnited States Tax Court · 1978
- Kavanagh, Collector of Internal Revenue v. EvansCourt of Appeals for the Sixth Circuit · 1951
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