Estate of Baron v. Commissioner
United States Tax Court
B purchased certain rights in a master recording in exchange for $ 90,000 cash and $ 560,000 in two nonrecourse notes payable solely out of the record sales proceeds. B claimed depreciation deductions based on the $ 90,000 cash and a $ 460,000 nonrecourse note, the second note having been canceled prior to the filing of the tax returns.
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B purchased certain rights in a master recording in exchange for $ 90,000 cash and $ 560,000 in two nonrecourse notes payable solely out of the record sales proceeds. B claimed depreciation deductions based on the $ 90,000 cash and a $ 460,000 nonrecourse note, the second note having been canceled prior to the filing of the tax returns. Held, the obligation represented by the nonrecourse note was too contingent to be included in basis irrespective of the existence of some value which might be considered fair market value. Held, further, petitioners have not carried their burden of proving…
1Opinion of the Court
Tannenwald, Judge:
Respondent determined the following deficiencies in petitioners’ Federal income tax for 1977 and 1978:
Year Deficiency
1977 . $230,031
1978 . 82,525
After concessions, we must determine whether petitioners are entitled to various deductions and credits claimed in connection with Sydney Baron’s purchase of the U.S. and Canadian rights in the master recording of the soundtrack of the motion picture "The Deep” (sometimes hereafter referred to as purchase of the master recording).
FINDINGS OF FACT
Some of the facts have been stipulated and are found accordingly.
Petitioners’ legal…
2Cases cited38 opinions
- Jacobellis v. OhioSupreme Court of the United States · 1964
- Crane v. CommissionerSupreme Court of the United States · 1947
- Dreicer v. CommissionerUnited States Tax Court · 1982
- Golanty v. CommissionerUnited States Tax Court · 1979
- Engdahl v. CommissionerUnited States Tax Court · 1979
33 more not listed; retrieve them via the Exa API.
3Cited by168 opinions
- Beck v. CommissionerUnited States Tax Court · 1985
- Rose v. CommissionerUnited States Tax Court · 1987
- Antonides v. CommissionerUnited States Tax Court · 1988
- Estate of Sydney S. Baron, Sylvia S. Baron, Administratrix, and Sylvia S. Baron v. Commissioner of Internal RevenueCourt of Appeals for the Second Circuit · 1986
- Waddell v. CommissionerUnited States Tax Court · 1986
163 more not listed; retrieve them via the Exa API.