Portable Industries, Inc. v. Commissioner
United States Tax Court
1. Petitioner gave X corporation a license under which petitioner received royalties. A separate so-called service agreement was executed which provided that X would pay petitioner $ 30,000 per year for 2 years for petitioner's services in improving the patented devices and expanding their use. In each taxable year, X paid petitioner $ 30,000. The question is whether all or part of the $ 30,000 constituted personal holding company income.
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1. Petitioner gave X corporation a license under which petitioner received royalties. A separate so-called service agreement was executed which provided that X would pay petitioner $ 30,000 per year for 2 years for petitioner's services in improving the patented devices and expanding their use. In each taxable year, X paid petitioner $ 30,000. The question is whether all or part of the $ 30,000 constituted personal holding company income. Held, that a portion represented personal holding company income; a portion was compensation for services rendered; the total amount of personal holding…
1Opinion of the Court
OPINION.
Haeron, Judge:
The issue to be decided is whether during the taxable years ended March 31, 1949, and March 31, 1950, petitioner was a personal holding company as defined by section 501 of the 1939 Code. Petitioner met the stock ownership requirement of section 501 (a) (2). The issue is restricted to whether the required percentage of gross income of petitioner in each taxable year was personal holding company income within sections 501 (a) (1) and 502. The required percentage would be at least 80 per cent for the year ended March 31,1949, and the percentage for the year ended March 31,…
2Cases cited6 opinions
- Haywood Lumber & Mining Co. v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1950
- Hugh Smith, Inc. v. CommissionerUnited States Tax Court · 1947
- Haywood Lumber & M. Co. v. CommissionerUnited States Tax Court · 1949
- Commissioner of Internal Rev. v. Affiliated EnterprisesCourt of Appeals for the Tenth Circuit · 1941
- O. Falk's Dep't Store, Inc. v. CommissionerUnited States Tax Court · 1953
1 more not listed; retrieve them via the Exa API.
3Cited by10 opinions
- Estate of Christ v. Comm'rUnited States Tax Court · 1970
- Collino v. CommissionerUnited States Tax Court · 1956
- Matter of IJ Knight Realty Corp.District Court, E.D. Pennsylvania · 1977
- Estate of Baer v. CommissionerUnited States Tax Court · 1957
- Collino v. CommissionerUnited States Tax Court · 1956
5 more not listed; retrieve them via the Exa API.