Canning v. Commissioner
United States Board of Tax Appeals
1. In consideration of certain monthly royalties to be paid, petitioner on December 4, 1922, granted a corporation the sole and exclusive right and license to make, use and sell forever, or until the end of the life of any patent and any renewal thereof taken out therefor, an oxidizing compound, invented by him to improve the efficiency of gasoline motors, the corporation, however, having the option to terminate the contract upon giving 90 days written notice.
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1. In consideration of certain monthly royalties to be paid, petitioner on December 4, 1922, granted a corporation the sole and exclusive right and license to make, use and sell forever, or until the end of the life of any patent and any renewal thereof taken out therefor, an oxidizing compound, invented by him to improve the efficiency of gasoline motors, the corporation, however, having the option to terminate the contract upon giving 90 days written notice. On June 8, 1923, petitioner made an absolute assignment to his wife of an undivided one half interest in his aforesaid invention.…
1Opinion of the Court
*105OPINION.
Seawell:
The respondent contends that the entire monthly payments made by checks to the petitioner by the Boyce & Veeder Co. during the year 1924 represent taxable income of the petitioner for that year. The petitioner insists that only one half of the amount of such payments constitutes taxable income to him. Which contention is correct, is the main issue for our determination.
The record shows that it was the intention and desire of petitioner that his wife should have an undivided one-half interest in his invention and receive one half of whatever was realized from it, which…
2Cases cited9 opinions
- Seatree v. CommissionerUnited States Board of Tax Appeals · 1932
- Goodell-Pratt Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Kuhn v. GuildCourt of Appeals for the Third Circuit · 1913
- Shelby Steel Tube Co. v. Delaware Seamless Tube Co.U.S. Circuit Court for the District of Eastern Pennsylvania · 1907
- Cook v. Sterling Electric Co.U.S. Circuit Court for the District of Indiana · 1902
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3Cited by2 opinions
- Hart-Bartlett-Sturtevant Grain Co. v. Commissioner of Internal RevenueCourt of Appeals for the Eighth Circuit · 1950
- Canning v. CommissionerUnited States Board of Tax Appeals · 1933