McAfee v. Commissioner
United States Tax Court
A retiring partner of a law firm in 1941 entered into a contract with the other partners whereby he was to receive his aliquot proportion of the fees collected in cases in which he was deemed to have an interest. Held, that this was not a sale of a capital asset and that the income received by the petitioner under the contract in 1944 is taxable as ordinary income, rather than capital gain.
1Opinion of the Court
OPINION.
LeMire, Judge:
The crux of our question is, Did the petitioner sell to the other partners his interest in the partnership, or did he merely agree with them as to what he should be entitled to receive out of the fees thereafter collected on the work already performed or contracted for during his association with the firm?
In their briefs the parties have cited numerous cases in support of their respective contentions, including: Bull v. United States, 295 U. S. 247; Hill v. Commissioner, 38 Fed. (2d) 165; Pope v. Commissioner, 39 Fed. (2d) 420; Helvering v. Smith, 90 Fed. (2d) 590; Doyle…
2Cases cited2 opinions
- Bull v. United StatesSupreme Court of the United States · 1935
- Lehman v. CommissionerUnited States Tax Court · 1946
3Cited by11 opinions
- Tighe v. CommissionerUnited States Tax Court · 1959
- Wolcott v. CommissionerUnited States Tax Court · 1962
- Spicker v. CommissionerUnited States Tax Court · 1956
- Black v. Lockhart, Collector of Internal RevenueCourt of Appeals for the Eighth Circuit · 1954
- Laube v. CommissionerUnited States Tax Court · 1957
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