Speicher v. Comm'r
United States Tax Court
1. In each of the taxable years petitioner Franklin S. Speicher received percentage payments from a corporation to which he had transferred complete ownership of an invention which he had perfected, but not patented, prior to the date of transfer. Petitioners on their joint returns reported these payments as capital gains. The Commissioner has determined that the payments were royalty income and taxable in full.
Read the full summary
1. In each of the taxable years petitioner Franklin S. Speicher received percentage payments from a corporation to which he had transferred complete ownership of an invention which he had perfected, but not patented, prior to the date of transfer. Petitioners on their joint returns reported these payments as capital gains. The Commissioner has determined that the payments were royalty income and taxable in full. Held, the payments were made as part of the purchase price of an invention which petitioner assigned to the corporation and the payments were properly treated as long-term capital…
1Opinion of the Court
OPINION.
Black, Judge:
There are two issues involved in this proceeding. They are: (1) Were the percentage payments received by petitioner from M. E. Cunningham Company for the calendar years 1951, 1952, and 1953 capital gains from the sale of an invention of a steel stamping machine which he had perfected but not patented prior to its assignment to the company, or royalties, taxable as ordinary income; and (2) are the petitioners subject to additions to tax for failure to file a declaration of estimated tax for 1951 and for underestimation of their tax for 1951 ? No additions to tax have been…
2Cases cited5 opinions
- Waterman v. MacKenzieSupreme Court of the United States · 1891
- Myers v. Comm'rUnited States Tax Court · 1946
- Philbrick v. CommissionerUnited States Tax Court · 1956
- Ruge v. Comm'rUnited States Tax Court · 1956
- Marco v. CommissionerUnited States Tax Court · 1955
3Cited by21 opinions
- England v. CommissionerUnited States Tax Court · 1960
- Fawick v. Comm'rUnited States Tax Court · 1969
- Burde v. CommissionerUnited States Tax Court · 1964
- Heard v. CommissionerUnited States Tax Court · 1958
- Ofria v. CommissionerUnited States Tax Court · 1981
16 more not listed; retrieve them via the Exa API.