June L. Myers v. United States

CORDOVA, District Judge:

This is an appeal from a judgment denying June L. Myers’ (taxpayer) claim for a refund of taxes. The refund claim relates to her royalty proceeds from the transfer of her interest in a patent application and whether such proceeds should be taxed as ordinary income or capital gain. The District Court found that a patent application, for which a “notice of allowance” has been received prior to transfer, had “sufficiently matured” so as to be property subject to an allowance for depreciation and that the proceeds from such transfer are taxable as ordinary income. 26…