Winchell Co. v. Commissioner
United States Tax Court
Petitioner Co. made a $ 25,000 payment to X Co., a competitor doing business in the same building, pursuant to an agreement whereby X Co. agreed to dispose of all its equipment and facilities, vacate its present place of business, and proceed with its complete liquidation; petitioner succeeded to all the goodwill of X Co. together with X Co.'s records, lists, and files and received an option to purchase X Co.'s equipment.
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Petitioner Co. made a $ 25,000 payment to X Co., a competitor doing business in the same building, pursuant to an agreement whereby X Co. agreed to dispose of all its equipment and facilities, vacate its present place of business, and proceed with its complete liquidation; petitioner succeeded to all the goodwill of X Co. together with X Co.'s records, lists, and files and received an option to purchase X Co.'s equipment. Pursuant to this agreement petitioner also entered into 5-year employment contracts with three of X Co.'s key salesmen who also had signed the agreement. Each contract…
1Opinion of the Court
OPINION
Tietjens, Judge:
The Commissioner determined deficiencies in petitioner’s income tax of $433.33 and $2,500, respectively, for 1963 and 1964.
We must decide what portion, if any, of a $25,000 payment petitioner made to the Bingham Co., pursuant to an agreement between them, was paid for property which is subject to depreciation.
The facts have been fully stipulated. The stipulation and the exhibits attached thereto are incorporated herein by this reference.
The Winchell Co. (hereinafter referred to as petitioner) is a corporation whose principal office at all times has been located in…
2Cases cited7 opinions
- Ullman v. CommissionerCourt of Appeals for the Second Circuit · 1959
- Michaels v. CommissionerUnited States Tax Court · 1949
- Levinson v. CommissionerUnited States Tax Court · 1966
- Thoms v. CommissionerUnited States Tax Court · 1968
- Delsea Drive-In Theatres, Inc. v. Commissioner of Internal RevenueCourt of Appeals for the Third Circuit · 1967
2 more not listed; retrieve them via the Exa API.
3Cited by12 opinions
- Lucas v. CommissionerUnited States Tax Court · 1972
- Wilmot Fleming Engineering Co. v. CommissionerUnited States Tax Court · 1976
- Miller v. CommissionerUnited States Tax Court · 1971
- International Life Ins. Co. v. CommissionerUnited States Tax Court · 1969
- Skaggs Cos. v. CommissionerUnited States Tax Court · 1972
7 more not listed; retrieve them via the Exa API.