Bassett v. Commissioner
United States Tax Court
Held, amounts received as royalties by petitioners, as donees of a gift of a royalty right from their son, as donor, where he on July 17, 1936, and December 4, 1937, had exchanged stock for original royalty interest which was held by a corporation, such exchange being in partial liquidation of the corporation, constitute ordinary income under sections 22(a), I.R.C. 1939, and 61(a), I.R.C. 1954.
1Opinion of the Court
Withey, Judge:
The respondent determined deficiencies in petitioners’ income tax for the years and in the amounts as follows:
Year Amount
1951_$1,793. 72
1952 _ 854. 98
1953 _ 986.36
1954 _ 512. 50
1955 _ 557.71
The sole issue to be decided is whether royalty payments received by petitioners during the years 1951 to 1955, inclusive, represent ordinary income or capital gain.
FINDINGS OR FACT.
Some of the facts have been stipulated and are found accordingly.
Rex Earl Bassett, Sr., and Dot Bassett, petitioners, are husband and wife residing during the years here involved at Fort Lauderdale, Florida.…
2Cases cited10 opinions
- Burnet v. LoganSupreme Court of the United States · 1931
- Commissioner of Internal Revenue v. CarterCourt of Appeals for the Second Circuit · 1948
- Commissioner of Internal Revenue v. HopkinsonCourt of Appeals for the Second Circuit · 1942
- Carter v. CommissionerUnited States Tax Court · 1947
- Westover v. SmithCourt of Appeals for the Ninth Circuit · 1949
5 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Bassett v. CommissionerUnited States Tax Court · 1961