Schmitt v. Commissioner
United States Tax Court
Held: 1. An instrument, transferring rights to a territorial franchise holder in a bookkeeping procedure, containing provisions which in combination resulted in the retention by the transferor of substantial rights in the procedure, did not accomplish a sale or exchange within the meaning of section 117 (a), I. R. C. 1939. Nor is the transaction covered by section 117 (q). 2. Certain payments made by petitioner to or on behalf of a corporation in connection with furnishing a…
Read the full summary
Held: 1. An instrument, transferring rights to a territorial franchise holder in a bookkeeping procedure, containing provisions which in combination resulted in the retention by the transferor of substantial rights in the procedure, did not accomplish a sale or exchange within the meaning of section 117 (a), I. R. C. 1939. Nor is the transaction covered by section 117 (q). 2. Certain payments made by petitioner to or on behalf of a corporation in connection with furnishing a course of instruction and training in the use of such procedure were proper charges against petitioner's receipts from…
1Opinion of the Court
Respondent determined deficiencies in petitioners’ income tax for the years 1949, 1950, and 1951 in the amounts of $31.44, $9,357.72, and $2,643.40, respectively.
The issues, reduced to two by the parties, are first, whether certain transactions resulted in the sale or exchange of a capital asset, and second whether certain payments made by petitioner qualify as deductions.
FINDINGS OF FACT.
Some of the facts were stipulated and are so found.
Petitioners Joe L. Schmitt, Jr. (hereinafter sometimes referred to as petitioner), and Helen M. Schmitt are, and were during the years 1949, 1950, and 1951,…
2Cases cited1 opinion
- James R. Watkins and Lucile L. Watkins v. United StatesCourt of Appeals for the Second Circuit · 1958
3Cited by14 opinions
- Rodgers v. CommissionerUnited States Tax Court · 1969
- Vern H. Moberg and Reta N. Moberg v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1962
- Joe L. Schmitt, Jr., and Helen N. Schmitt v. Commissioner of Internal RevenueCourt of Appeals for the Ninth Circuit · 1959
- Roob v. CommissionerUnited States Tax Court · 1968
- Taylor v. CommissionerUnited States Tax Court · 1970
9 more not listed; retrieve them via the Exa API.