Macdonald v. Comm'r
United States Tax Court
C.F.U. granted nonexclusive licenses in patents which it held. C.F.U. then sold its remaining interests in the patents to petitioners. Petitioners then sold all their rights to their controlled corporation. Held, that petitioners transferred all substantial rights which they held in the patents, and thus the amounts they received qualify as capital gains.
Read the full summary
C.F.U. granted nonexclusive licenses in patents which it held. C.F.U. then sold its remaining interests in the patents to petitioners. Petitioners then sold all their rights to their controlled corporation. Held, that petitioners transferred all substantial rights which they held in the patents, and thus the amounts they received qualify as capital gains. Held, further, that the contract right to receive a certain number of dollars per foot of hardboard produced had no ascertainable fair market value in 1961, and the transaction is an open one.
1Opinion of the Court
Donald C. MacDonald and Maud G. MacDonald, et al., 1 Petitioners v. Commissioner of Internal Revenue, Respondent
Macdonald v. Comm'r
Docket Nos. 3997-68, 3998-68, 3999-68, 4000-68
United States Tax Court
55 T.C. 840; 1971 U.S. Tax Ct. LEXIS 178; 170 U.S.P.Q. (BNA) 133;
February 25, 1971, Filed
Decisions will be entered under Rule 50.
C.F.U. granted nonexclusive licenses in patents which it held. C.F.U. then sold its remaining interests in the patents to petitioners. Petitioners then sold all their rights to their controlled corporation. Held, that petitioners transferred all substantial rights which…
2Cases cited20 opinions
- Waterman v. MacKenzieSupreme Court of the United States · 1891
- Burnet v. LoganSupreme Court of the United States · 1931
- Beck Chemical Equipment Corp. v. CommissionerUnited States Tax Court · 1957
- Philadelphia Park Amusement Co. v. United StatesUnited States Court of Claims · 1954
- Bell Intercontinental Corporation v. The United StatesUnited States Court of Claims · 1967
15 more not listed; retrieve them via the Exa API.