Waddell v. Commissioner
United States Tax Court
Pursuant to Comp-U-Med's offering circular, Ps applied for four medical equipment franchises. Comp-U-Med approved Ps' application on Dec. 30, 1980. Each franchise included the purchase of one of Comp-U-Med's computerized electrocardiogram (ECG) terminals. For each franchise and terminal, Ps paid $ 6,000 in cash and executed a note in the amount of $ 25,000. Comp-U-Med labeled $ 500 of the $ 6,000 as a "franchise fee" and $ 3,000 as a "first year royalty."
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Pursuant to Comp-U-Med's offering circular, Ps applied for four medical equipment franchises. Comp-U-Med approved Ps' application on Dec. 30, 1980. Each franchise included the purchase of one of Comp-U-Med's computerized electrocardiogram (ECG) terminals. For each franchise and terminal, Ps paid $ 6,000 in cash and executed a note in the amount of $ 25,000. Comp-U-Med labeled $ 500 of the $ 6,000 as a "franchise fee" and $ 3,000 as a "first year royalty." Comp-U-Med allocated the remaining $ 2,500 of cash and all of the $ 25,000 note to the ECG terminal, for a purported purchase price of $…
1Opinion of the Court
PARKER, Judge:
Respondent determined a deficiency of $4,833 in petitioners’ 1980 Federal income tax and an addition to tax of $1,208 under section 6651(a).1 At issue in this case are various deductions and an investment tax credit claimed by petitioners in regard to their acquisition of four electrocardiogram (ECG) analysis computer terminals pursuant to franchise agreements with Comp-U-Med, the equipment’s manufacturer. The issues for decision are:(1) Whether petitioners’ computerized ECG terminal franchise venture was an activity engaged in for profit;(2) Whether, and if so to what extent,…
2Cases cited89 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- United States v. BoyleSupreme Court of the United States · 1985
- Crane v. CommissionerSupreme Court of the United States · 1947
- Helvering v. National Grocery Co.Supreme Court of the United States · 1938
- Dreicer v. CommissionerUnited States Tax Court · 1982
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3Cited by139 opinions
- Rose v. CommissionerUnited States Tax Court · 1987
- Rybak v. CommissionerUnited States Tax Court · 1988
- Zirker v. CommissionerUnited States Tax Court · 1986
- Warner R. Waddell and Jeanette I. Waddell v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1988
- Lohrke v. CommissionerUnited States Tax Court · 1967
134 more not listed; retrieve them via the Exa API.