Mathey v. Comm'r
United States Tax Court
1. Income -- Patent Infringement Award. -- An award for patent infringement was income, not compensation for a loss of capital. 2. Involuntary Conversion -- Section 117 (j). -- The award was not made for an involuntary conversion within the meaning of section 117 (j) and is not taxable thereunder. 3. Section 107 (b) -- Income From Invention. -- Section 107 (b) does not apply, if for no other reason, because the amount received in the taxable year is not shown to be at least…
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1. Income -- Patent Infringement Award. -- An award for patent infringement was income, not compensation for a loss of capital. 2. Involuntary Conversion -- Section 117 (j). -- The award was not made for an involuntary conversion within the meaning of section 117 (j) and is not taxable thereunder. 3. Section 107 (b) -- Income From Invention. -- Section 107 (b) does not apply, if for no other reason, because the amount received in the taxable year is not shown to be at least 80 per cent of the total income from the invention.
1Opinion of the Court
OPINION.
Mukdock, Judge:
The petitioner concedes that $688.89 representing foreign profits made by United and $609.72 representing the interest on the final judgment to the date of payment is taxable to him as ordinary income. He contends that the remainder of the net recovery of $107,825.29 was in reality not income at all, but was merely a partial recovery of a capital loss represented by the damage to his shoe machinery business, done by United for the purpose of destroying the petitioner as a competitor. He makes this contention “in view of the general principle of Federal income taxation…
2Cases cited3 opinions
- Eisner v. MacOmberSupreme Court of the United States · 1920
- Dowagiac Manufacturing Co. v. Minnesota Moline Plow Co.Supreme Court of the United States · 1915
- United States v. Safety Car Heating & Lighting Co.Supreme Court of the United States · 1936
3Cited by32 opinions
- Sanders v. CommissionerUnited States Tax Court · 1954
- Mathey v. Commissioner of Internal RevenueCourt of Appeals for the First Circuit · 1949
- Lum v. CommissionerUnited States Tax Court · 1949
- Freeman v. CommissionerUnited States Tax Court · 1959
- Arthur Kurlan and Marilyn Kurlan v. Commissioner of Internal Revenue, Commissioner of Internal Revenue v. Arthur Kurlan and Marilyn KurlanCourt of Appeals for the Second Circuit · 1965
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