Anton Lorenz and Irene Lorenz v. United States

WHITAKER, Judge.

This is a suit for refund of Federal income taxes. Plaintiff, Anton Lorenz, during the years with which we are concerned, was a professional inventor. In the joint return filed by him and his wife, Irene Lorenz, for 1952, there was reported, as ordinary income, receipts from the sale and assignment of patent rights. They claim they are taxable as capital gains, by reason of the passage of the Act of June 29, 1956 (70 Stat. 404), 26 U.S.C.A. § 117, subsequent, of course, to the filing of their return.

Defendant does not dispute that they are taxable as capital gains, but says…