Newton Insert Co. v. Commissioner
United States Tax Court
Petitioner's corporate transferor, Newton, entered into an agreement in 1961 with City of Hope, a California nonprofit corporation, whereby City of Hope granted Newton in return for a percentage of sales the exclusive rights to make, use, and sell patented products for the entire life of the patents.
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Petitioner's corporate transferor, Newton, entered into an agreement in 1961 with City of Hope, a California nonprofit corporation, whereby City of Hope granted Newton in return for a percentage of sales the exclusive rights to make, use, and sell patented products for the entire life of the patents. These patents had been transferred to City of Hope by Neuschotz, the inventor and owner of the patents and major shareholder of Newton until 1965. Newton entered into an exclusive license agreement in 1966 with Neuschotz, covering other patents in return for a percentage of annual sales of the…
1Opinion of the Court
OPINION
Scott, Judge:
Respondent determined that Tridair Industries was liable as transferee for a deficiency of $444,779 for the taxable year ended October 31, 1967, of its transferor, Newton Insert Co. (hereinafter Newton). Newton was dissolved and its assets transferred to Tridair Industries on October 31,1967, in liquidation under the provisions of section 332 (b), I.R.C. 1954,1 to which section 334 (b) was applicable.
The sole issue for decision is whether percentage payments made by Newton to Robert Neuschotz, City of Hope, and Marvin Best under 1961 and 1966 licensing agreements represent…
2Cases cited21 opinions
- Waterman v. MacKenzieSupreme Court of the United States · 1891
- Consolidated Rock Products Co. v. Du BoisSupreme Court of the United States · 1941
- Myers v. Comm'rUnited States Tax Court · 1946
- Virginian Hotel Corporation v. Helvering, Commissioner of Internal RevenueSupreme Court of the United States · 1943
- Allen, Collector of Internal Revenue v. WernerCourt of Appeals for the Fifth Circuit · 1951
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3Cited by11 opinions
- Green v. Comm'rUnited States Tax Court · 1984
- Simmonds Precision Prods. v. Comm'rUnited States Tax Court · 1980
- Liquid Paper Corp. v. United StatesUnited States Court of Claims · 1983
- Newton Insert Co. v. CommissionerCourt of Appeals for the Ninth Circuit · 1976
- Allied Tube & Conduit Corp. v. CommissionerUnited States Tax Court · 1975
6 more not listed; retrieve them via the Exa API.