Mansfield Journal Co. v. Commissioner of Internal Revenue

MARTIN, Circuit Judge.

This is a petition for review of a decision of the Tax Court of the United States finding deficiencies in the petitioner’s income tax for the taxable years 1951 and 1952 in amounts of $41,041.72 and $13,930.63, respectively. The question presented is whether considerations paid for the assignments of the right to purchase newsprint under a long-term contract are taxable as capital gains, or as ordinary income.

Mansfield Journal Company, petitioner, is a daily newspaper publishing corporation in Mansfield, Ohio, owned at the crucial time by S. A. Horvitz and I Horvitz, who…