Tomerlin Trust v. Commissioner
United States Tax Court
R determined deficiencies of personal holding company tax against P, a transferee of T, based upon his determination that certain payments received by T from X under a contract involving the right to use a trademark constituted royalties from a license rather than proceeds from the sale of an asset. Under the facts, held, that the contract between T and X was a sale, not a license, and the moneys received by T, although ordinary income, were not royalties.
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R determined deficiencies of personal holding company tax against P, a transferee of T, based upon his determination that certain payments received by T from X under a contract involving the right to use a trademark constituted royalties from a license rather than proceeds from the sale of an asset. Under the facts, held, that the contract between T and X was a sale, not a license, and the moneys received by T, although ordinary income, were not royalties. Held, further, that T was not a personal holding company. Sec. 1253(a), (b), and (c), I.R.C. 1954, interpreted.
1Opinion of the Court
James O. Tomerlin Trust, Transferee, Petitioner v. Commissioner of Internal Revenue, Respondent
Tomerlin Trust v. Commissioner
Docket No. 16219-85
United States Tax Court
87 T.C. 876; 1986 U.S. Tax Ct. LEXIS 25; 87 T.C. No. 58;
October 29, 1986, Filed
Decision will be entered for the petitioner.
R determined deficiencies of personal holding company tax against P, a transferee of T, based upon his determination that certain payments received by T from X under a contract involving the right to use a trademark constituted royalties from a license rather than proceeds from the sale of an asset. Under…
2Cases cited15 opinions
- Waterman v. MacKenzieSupreme Court of the United States · 1891
- F. W. Woolworth Co. v. CommissionerUnited States Tax Court · 1970
- Bell Intercontinental Corporation v. The United StatesUnited States Court of Claims · 1967
- Miller v. CommissionerUnited States Tax Court · 1978
- Kavanagh, Collector of Internal Revenue v. EvansCourt of Appeals for the Sixth Circuit · 1951
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