McCullough v. Comm'r
United States Tax Court
Petitioner I. J. McCullough and his brother owned 80 and 20 percent, respectively, of the stock of Tool Company. Subject to royalty rights of three other individuals, Sweetman and another were the owners of patent applications covering devices for the use of explosives for cutting and perforating pipe in wells, particularly oil and gas wells.
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Petitioner I. J. McCullough and his brother owned 80 and 20 percent, respectively, of the stock of Tool Company. Subject to royalty rights of three other individuals, Sweetman and another were the owners of patent applications covering devices for the use of explosives for cutting and perforating pipe in wells, particularly oil and gas wells. On October 1, 1947, Sweetman and his coowner granted an exclusive license to Tool Company to manufacture, sell, lease, rent, and use the devices covered in the patent applications and any and all patents which might be granted, subject, however, to the…
1Opinion of the Court
OPINION.
TuRnee, Judge:
It is the position of the petitioner that he acquired an interest in the jet perforator patents from Sweetman on August 4, 1948; that he sold the interest so acquired to Tool Company on December 28, 1950; and that the payments received during the taxable years under the 1950 agreement constituted long-term capital gains from such sale.
If, however, the license agreement of October 1, 1947, had effected a sale of the patents to Tool Company, as respondent contends, petitioner in 1948 acquired no ownership in the patents and could not and did not sell any interest therein…
2Cases cited11 opinions
- Lusthaus v. CommissionerSupreme Court of the United States · 1946
- Myers v. Comm'rUnited States Tax Court · 1946
- Commissioner of Internal Revenue v. Celanese Corp.Court of Appeals for the D.C. Circuit · 1944
- Kronner v. United StatesUnited States Court of Claims · 1953
- Osenbach v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1952
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3Cited by1 opinion
- McCullough v. Comm'rUnited States Tax Court · 1962