Lan Jen Chu v. Commissioner

OPINION

Baum, Judge:

The issue for decision is whether the amounts received by Dr. Chu in 1962,1963,1964, and 1965, from the transfer of his 11/12 interest in the antenna patent application to Chu Associates, Inc., are taxable as ordinary income under section 1239,1.B.C. 1954,1 or as long-term capital gain. Section 1239 provides in part as follows:

SEC. 1239. GAIN FROM SALE OF CERTAIN PROPERTY BETWEEN SPOUSES OR BETWEEN AN INDIVIDUAL AND A CONTROLLED CORPORATION.(a) Tkeatment op Gain as Obdinaby Income. — In the ease of a sale or exchange, directly or indirectly, of property described in…