Schaefer v. Commissioner
United States Tax Court
Sec. 1.469-2T(c)(7)(iv), Temporary Income Tax Regs., provides that passive activity gross income does not include "Gross income of an individual from a covenant by such individual not to compete". Held, the regulation is valid.
1Opinion of the Court
OPINION
Raum, Judge:
The Commissioner determined deficiencies in petitioner’s income taxes totaling $8,688, $55,383, and $11,461 for the years 1988, 1989, and 1990, respectively. Following concessions by petitioner, the sole issue before us is whether income received pursuant to a covenant not to compete is passive income for purposes of section 469.1 More specifically at issue is the validity of section 1.469-2T(c)(7)(iv), Temporary Income Tax Regs., 53 Fed. Reg. 5686, 5716 (Feb. 25, 1988), which, if valid, would without dispute require a decision against petitioner.
Petitioner, William H.…
2Cases cited16 opinions
- Mistretta v. United StatesSupreme Court of the United States · 1989
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- National Muffler Dealers Assn., Inc. v. United StatesSupreme Court of the United States · 1979
- Rowan Cos. v. United StatesSupreme Court of the United States · 1981
11 more not listed; retrieve them via the Exa API.
3Cited by35 opinions
- Schwalbach v. CommissionerUnited States Tax Court · 1998
- Greenberg Bros. P'ship 4 v. CommissionerUnited States Tax Court · 1998
- Hillman v. CommissionerUnited States Tax Court · 2000
- Unionbancal Corp. v. CommissionerUnited States Tax Court · 1999
- Ohio Farm Bureau Fed'n v. CommissionerUnited States Tax Court · 1996
30 more not listed; retrieve them via the Exa API.