Johnson v. State Tax Commission

Edward H. Howell, Judge.

Plaintiffs filed this suit to set aside an income tax deficiency assessed by defendant for the year 1961.

Plaintiffs sold their bakery business in 1961 for $31,500 and assigned $20,000 of the sales price to the value of their lease and claimed this was entitled to special treatment as a capital gain. OPS 316.436, et seq.

The critical question in this case is whether or not the leasehold interest was a “valuable long-term leasehold” as the plaintiffs contend. There are other issues raised by the defendant but this court’s determination that the lease had no value makes it…