Baldarelli v. Commissioner
United States Tax Court
In 1966, S sold his partnership interest in an H & R Block franchise to B for $ 45,000 payable in four annual installments. The purchase and sale agreement included a covenant not to compete to which the parties allocated no value. Held: The noncompete covenant will not be assigned a value by this Court absent "strong proof" as to what its value might be.
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In 1966, S sold his partnership interest in an H & R Block franchise to B for $ 45,000 payable in four annual installments. The purchase and sale agreement included a covenant not to compete to which the parties allocated no value. Held: The noncompete covenant will not be assigned a value by this Court absent "strong proof" as to what its value might be. Therefore, S correctly reported the income he received as a long-term capital gain and B is not entitled to amortization deductions.
1Opinion of the Court
Libero P. Baldarelli and Rita I. Baldarelli, Petitioners v. Commissioner of Internal Revenue, Respondent; Jack H. and Erlene Shaffer, Petitioners v. Commissioner of Internal Revenue, Respondent
Baldarelli v. Commissioner
Docket Nos. 3338-70, 3482-70
United States Tax Court
61 T.C. 44; 1973 U.S. Tax Ct. LEXIS 41; 61 T.C. No. 5;
October 9, 1973, Filed
Decision will be entered for the respondent in docket No. 3338-70.
Decision will be entered for the petitioners in docket No. 3482-70.
In 1966, S sold his partnership interest in an H & R Block franchise to B for $ 45,000 payable in four annual…
2Cases cited30 opinions
- Jack E. Golsen and Sylvia H. Golsen v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1971
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
- Danielson v. CommissionerUnited States Tax Court · 1965
- Ullman v. CommissionerCourt of Appeals for the Second Circuit · 1959
- Hamlin's Trust v. Commissioner of Internal Revenue. Nowel's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1954
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