Danielson v. Commissioner
United States Tax Court
Held, on these facts, that amounts allocated by the purchaser to petitioners' covenants not to compete, which accompanied their sale of the stock of a small loan company, were in reality payments for corporate assets, thus making the payments so received taxable as capital gains.
1Opinion of the Court
Dawson, Judge:
Respondent determined the following deficiencies in petitioners’ income taxes for the year 1959:
Carl
5489-63. Helen P. Sherman. ..... 4,626.30
344-64.. Estate of Jacob F. Schaffner, Deceased, Elizabeth Schaffner and Erwin and Elizabeth Schaffner. 1,770.96
473-64.. Hugh E. and Katherine McLennan___ 6,001.49
In docket No. 5489-63 Helen P. Sherman has claimed in her petition an overpayment in the amount of $2,675.81.
Petitioners sold the stock of their small loan company for $374 per share and the buyer allocated a portion thereof to separate covenants not to compete just prior to the…
2Cases cited9 opinions
- Gregory v. HelveringSupreme Court of the United States · 1935
- Commissioner v. Court Holding Co.Supreme Court of the United States · 1945
- Ullman v. CommissionerCourt of Appeals for the Second Circuit · 1959
- Hamlin's Trust v. Commissioner of Internal Revenue. Nowel's Estate v. Commissioner of Internal RevenueCourt of Appeals for the Tenth Circuit · 1954
- Schulz v. CommissionerCourt of Appeals for the Ninth Circuit · 1961
4 more not listed; retrieve them via the Exa API.
3Cited by188 opinions
- Commissioner v. DanielsonCourt of Appeals for the Third Circuit · 1967
- Buffalo Tool & Die Mfg. Co. v. CommissionerUnited States Tax Court · 1980
- Schmitz v. CommissionerUnited States Tax Court · 1968
- Coleman v. CommissionerUnited States Tax Court · 1986
- Segel v. CommissionerUnited States Tax Court · 1987
183 more not listed; retrieve them via the Exa API.