Gregg v. Comm'r
United States Tax Court
1. During the year 1942, petitioner Jon Gregg had pending an application for letters patent to cover the manufacture of certain outsoles known as rope soles. The method for fabricating this product had been conceived and developed by both petitioners in conjunction with each other.
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1. During the year 1942, petitioner Jon Gregg had pending an application for letters patent to cover the manufacture of certain outsoles known as rope soles. The method for fabricating this product had been conceived and developed by both petitioners in conjunction with each other. Following Jon Gregg's assignment of this application to Lynne Gregg, his wife, both petitioners entered into an agreement with a certain manufacturer whereby the latter was "* * * granted the sole and exclusive right and license to manufacture and sell * * *" the rope sole product throughout the United States. This…
1Opinion of the Court
OPINION.
Van Fossan, Judge:
We have three issues presented in these proceedings. The first is common to both cases and involves the treatment to be given to certain sums received by both petitioners during the taxable years here under review. Specifically, the question is whether such amounts are to be characterized as ordinary income taxable under section 22 (a) of the Code1 or as capital gains derived from the sale of a patent and taxable pursuant to sections 117 (a) and (b), Internal Revenue Code.2
During the year 1942 petitioners had pending before the United States Patent Office an…
2Cases cited13 opinions
- Cohan v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1930
- Waterman v. MacKenzieSupreme Court of the United States · 1891
- Gayler v. WilderSupreme Court of the United States · 1851
- United States v. General Electric Co.Supreme Court of the United States · 1926
- Crown Die & Tool Co. v. Nye Tool & MacHine WorksSupreme Court of the United States · 1923
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3Cited by2 opinions
- Hans Oetiker v. Jurid Werke Gmbh. Hans Oetiker v. Jurid Werke GmbhCourt of Appeals for the D.C. Circuit · 1982
- Gregg v. Comm'rUnited States Tax Court · 1952