Rakowsky v. Commissioner
United States Tax Court
Petitioner acquired in 1941, ownership of a contract for patent royalties and agreed to pay for such rights and for other property acquired at the same time, $ 50,000 to American Cyanamid Company. Petitioner executed his promissory note for this $ 50,000 payable to Cyanamid and due October 15, 1947. On May 1, 1942, petitioner assigned to Cyanamid his royalty contract as security for the $ 50,000 which he owed Cyanamid.
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Petitioner acquired in 1941, ownership of a contract for patent royalties and agreed to pay for such rights and for other property acquired at the same time, $ 50,000 to American Cyanamid Company. Petitioner executed his promissory note for this $ 50,000 payable to Cyanamid and due October 15, 1947. On May 1, 1942, petitioner assigned to Cyanamid his royalty contract as security for the $ 50,000 which he owed Cyanamid. On January 10, 1944, petitioner assigned to his daughter, Janis Velie, all of his right, title and interest in the patent royalty contract which he owned, subject, however, to…
1Opinion of the Court
OPINION.
Black, Judge:
The only issue in this proceeding is whether petitioner is taxable on net royalties of $6,212.82 which were paid to Cyanamid in the taxable year and applied by Cyanamid to the payment of indebtedness which petitioner owed Cyanamid, or whether such income is taxable to petitioner’s daughter, Janis, to whom he had, on January 10, 1944, assigned his. contract for royalties, subject to Cyanamid’s prior right to them until petitioner’s indebtedness to Cyanamid was fully paki.
We think the fact» sustain the Commissioner’s determination that the income in question is taxable to…
2Cases cited1 opinion
- Driscoll v. CommissionerUnited States Tax Court · 1944
3Cited by1 opinion
- Rakowsky v. CommissionerUnited States Tax Court · 1951