Ransburg Corp. v. Commissioner
United States Tax Court
Petitioner, a corporation which was not a "holder" as defined in sec. 1235(b), I.R.C. 1954, received payments during the years in issue from the sale of its Japanese patents, patent and utility model applications, and trademarks. The sales contract did not contain any stated interest or specify what portion of the deferred annual payments constituted interest. Petitioner reported the annual payments received as long-term capital gain.
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Petitioner, a corporation which was not a "holder" as defined in sec. 1235(b), I.R.C. 1954, received payments during the years in issue from the sale of its Japanese patents, patent and utility model applications, and trademarks. The sales contract did not contain any stated interest or specify what portion of the deferred annual payments constituted interest. Petitioner reported the annual payments received as long-term capital gain. Respondent determined that a portion of each payment represented unstated interest under sec. 483(a) and was taxable as ordinary income. Held: The payments do…
1Opinion of the Court
OPINION
Dawson, Judge:
Respondent determined deficiencies in petitioners’ Federal income taxes as follows:
TYE Nov. 30— Deficiency TYE Nov. 30— Deficiency
1966. $7,363.70 1969. $84,178.00
1967. 40,699.32 1970 . 66,604.00
1968. 53,879.13 1972 . 92,453.00
The parties have settled or conceded certain issues. The only issue remaining for our decision is whether the annual payments received by Ransburg Corp. during 1966 through 1970 and 1972, as a result of its sale of patents to Ransburg Japan Ltd. in 1963, are excepted pursuant to section 483(f)(4)1 from the unstated interest provisions of section…
2Cases cited7 opinions
- Lusthaus v. CommissionerSupreme Court of the United States · 1946
- Hellmich v. HellmanSupreme Court of the United States · 1928
- Curtis T. Busse and Myrtle Busse v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1973
- Busse v. CommissionerUnited States Tax Court · 1972
- Paxton v. CommissionerUnited States Tax Court · 1969
2 more not listed; retrieve them via the Exa API.
3Cited by2 opinions
- Ransburg Corp. v. CommissionerUnited States Tax Court · 1979
- Ransburg Corporation and Subsidiaries v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1980