Allan & Gloria Molasky v. Commissioner of Internal Revenue

BRIGHT, Senior Circuit Judge.

Allan and Gloria Molasky, husband and wife, appeal the tax court’s decision assessing a $187,649.00 deficiency in income tax due for the 1981 tax year. On appeal, the Molaskys contend that the tax court erroneously upheld a $354,200 noncompetition provision in an agreement negotiated by Allan Molasky for the sale of a family business, a closely held corporation. The Molaskys further contest the tax court’s conclusion that $324,000 of the $354,200 noncompetition provision constituted personal income to Allan Molasky. 1 The Mola-skys also allege error in the tax…