Dwight & Lloyd Sintering Co. v. Commissioner
United States Board of Tax Appeals
License agreements authorizing the licensees to make and use certain patented machines for refining ores, acquired for stock by a corporation, are intangible property for invested capital purposes and as such are subject to the limitation on intangibles contained in the Revenue Act of 1917. The value of assets acquired by a corporation for stock should be determined on the basis of facts known at the time of the acquisition, or facts reasonably anticipated.
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License agreements authorizing the licensees to make and use certain patented machines for refining ores, acquired for stock by a corporation, are intangible property for invested capital purposes and as such are subject to the limitation on intangibles contained in the Revenue Act of 1917. The value of assets acquired by a corporation for stock should be determined on the basis of facts known at the time of the acquisition, or facts reasonably anticipated. Subsequent events or earnings, when reasonably anticipated, may be shown for the purpose of demonstration or corroboration of actually…
1Opinion of the Court
*183OPINION.
Trammell:
Both the questions involved in this appeal affect invested capital for the fiscal year ended February 28, 1917. It is contended by the taxpayer that the license agreements acquired by the corporation for the issuance of its stock were tangible property and as such should not be subjected to the limitation on intangibles paid in for stock contained in the Eevenue Act of 1917. The Commissioner in adjusting the invested capital took the position that such agreements were intangible property. The taxpayer in support of its position claimed that the license agreements related to…
2Cited by12 opinions
- Concord Control, Inc. v. CommissionerUnited States Tax Court · 1982
- Central Consumers Wine & Liquor Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Charles F. Hubbs & Co. v. CommissionerUnited States Tax Court · 1949
- Concord Control, Inc. v. CommissionerUnited States Tax Court · 1982
- Dwight & Lloyd Sintering Co. v. CommissionerUnited States Board of Tax Appeals · 1924
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